HIGH PRIORITY MARKET - AUTOMOBILE
STRONG POLICY SUPPORT HAS BEEN CRUCIAL IN DEVELOPING THE SECTOR
Auto Policy 2002
· Automatic approval for foreign equity investment up to 100 per cent ; no minimum investment criteria .
· Encourage R & D by offering rebates on R & D expenditure .
Automotive Mission Plan ( AMP ) 2006 – 16
· AMP ' s vision is to make India a preferred destination for designing and manufacturing of automobiles and achieve a market size of USD154 billion by 2016 .
· Setting up of a technology modernisation fund focused on SMEs .
NATRiPs
· Set up at a total cost of USD388.5 million to enable the industry to be on par with global standards .
· Nine R & D centers of excellence with focus on low-cost manufacturing and product development solutions .
Dept . of Heavy Industries & Public Enterprises
· Worked towards reduction of excise duty on small cars and increase budgetary allocation for R & D .
· Weighted increase in R & D expenditure to 200 per cent from 150 per cent ( in-house ) and 175 per cent from 125 per cent ( outsourced ).
Union Budget FY15-16
· Excise duty on chassis for Ambulance reduced from 24 per cent to 12.5 per cent . Basic Customs Duty on Commercial Vehicles increased from 10 per cent to 20 per cent . General excise duty rate increased to 12.5 % from 12 %, thereby increasing excise duty on small cars , commercial vehicles , two wheelers and three wheelers .
The Automotive Mission Plan 2016-26 ( AMP 2026 )
· AMP 2026 targets a fourfold growth in the automobiles sector in India which includes the manufacturers of automobiles , auto components and tractor industry over the next ten years .
FAME ( April , 2015 )
· Planning to implement Faster Adoption & Manufacturing Of Electric Hybrid Vehicles ( FAME ) till 2020 which would cover all vehicle segments , all forms of hybrid and pure electric vehicles .
Notes : SME – Small and Medium Enterprises , R & D - Research and Development , NATRiP – National Automotive Testing and R & D Infrastructure Project , AMP - Automotive Mission , JNNURM - Jawaharlal Nehru National Urban Renewal Mission
STRONG POLICY SUPPORT HAS BEEN CRUCIAL IN DEVELOPING THE SECTOR
Following are the recent agreement and framework done by Indian government : -
Q Framework Agreement for establishing Free Trade between India and Thailand . Q
Q
India-Sri Lanka Bilateral Free Trade Area and the Proposal for Comprehensive Economic Partnership Agreement .
Framework Agreement on Comprehensive Economic Co-operation between the Association of South East Asian Nations ( ASEAN ) and India .
Q Agreement on South Asian Trade Free Trade Area ( SAFTA ).
Q India-SACU ( Southern African Customs Union ) Framework Agreement .
Q India-GCC ( Gulf Cooperation Council ) Framework Agreement .
Q Joint Study Group between India and Republic of Korea , and India and Japan .
Q India-Singapore Comprehensive Economic Cooperation Agreement ( CECA ).
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