The Union government is working on an import substitution industrialization policy, given that the substantial rise in imports, especially of crude oil, is adversely impacting the economy. The centre is formulating a policy to substitute imported goods with domestic products, of which electric vehicles will form a major part, Union minister for road transport, highways and shipping, Nitin Gadkari, said at the annual session of an event organized by the Automotive Component Manufacturers Association (ACMA).
“The automotive industry is always in need of more subsidies compared to what has been given to them. The industry now has to invest in research and development of new technologies and I would request car makers and suppliers to make use of our rivers while transporting their vehicles and other goods,” he said.
Increase in imports and the volatile dollar-rupee exchange rates have hurt the Indian economy in the recent past. The Union government has also been trying to reduce the crude oil bill to curb pollution in major cities. “The motive of our government has always been to reduce import of goods and reduce pollution levels and the automobile industry alone can contribute to both the manufacturing and service industry. This industry still contributes majorly in increasing exports,” said Gadkari.