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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