Indian auto growth drives focus on cleaner technologies

Emphasising the need for governance and reforms in the automotive sector, India's Transport minister, Kamal Nath, said his ministry is carrying out a comprehensive review of the Motor Vehicles Act. "The last decade was the decade of IT. This would be the decade of Infrastructure," he said at the 10th Auto Expo in Pragati Maidan.

While complimenting India's automotive industry for its entrepreneurial and leadership spirit, the minister pointed out that an 8% GDP growth meant greater stress on infrastructure. "The biggest deficit in the country today is in the infrastructure sector and roads are at the heart of it," he added.

Speaking at the occasion, Vilasrao Deshmukh, minister of heavy industries and public enterprises, said the Indian government is committed to creating a world class automobile industry. He said his ministry had taken measures to bridge the skill gap, set up a technology development fund for the auto sector, facilitate adoption of cleaner technologies and promote linkages between global and Indian industry.

Elaborating on the tremendous progress made by India's auto industry, Venu Srinivasan, president, Confederation of Indian Industry ( CII), said, "In 2008-09, 1.82 million cars and 8.4 million two-wheelers were sold with an aggregate vehicle sale of over 11 million." He said Indian industry had fared better than the global automotive majors despite the downturn. "Driven by our own robust internal demand and an effective government stimulus package, the automotive industry even managed to grow during 2008-09," he added.

"India can emerge as a hub for the international automobile industry, especially in the Asian region. New product development is fast, appropriate and accurate. India is rapidly progressing as a centre for clean auto technologies as well, developing hybrid and fuel efficient vehicles and exploring new sources of fuel," he told the Mail Today.

Pawan Goenka, president, Society of Indian Auto Manufacturers, mentioned that growth with greater responsibility towards reducing emissions and enhanced road safety will be essential for achieving the further growth trajectories.