Growth in the domestic economy has a long-term promise, but various processes around manufacturing need to be made simpler for the country to remain competitive, Union Minister for Heavy Industries, Mr Praful Patel, said on Tuesday.

He was speaking at the Automotive Component Manufacturers' Association's (ACMA) 51th Annual Session and National Conference.

“Manufacturing in India is not a cakewalk, there are many issues in terms of land acquisition and electricity requirements. We have to make the process simpler … competition is increasing right in the neighbourhood from countries like Vietnam and Cambodia,” Mr Patel said.

He added that dependence on imports also need to be reduced, while technology and skills need to be developed for the long-term. There is also a need to broad-base production throughout the country.

“The auto and component industry has felt a slight pinch because of the slowdown, but it is not a permanent feature. The sector will play an important role in the future. A reverse cycle has started, Indian companies are buying out firms overseas,” he said.

Joint study

ACMA also unveiled a joint study with JD Power titled ‘Insights into Supplier-OEM relationship: A Benchmarking Study'. The report gives directions to help suppliers make better strategic decisions when dealing with the OEMs. President, ACMA, Mr Srivats Ram said, “Beyond the conventional criteria of quality, cost and delivery, OEMs across the world prefer to engage with suppliers with stable lines of communication, good work culture, effective process orientation and end-customer knowledge. Further, they prefer suppliers who can jointly work with the OEMs in developing products and technologies to be delivered with a global footprint.”

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