Ludhiana Inc Hails Centre's New Duty On Import Of Auto Parts

Industrialists have welcomed the Centre's move to impose an anti-dumping duty on some auto parts being imported from China. However, at the same time, they have said that more steps are needed for the country to realize its 'Make in India' ambitions.

An anti-dumping duty of $0.35 to $1.11/kilogram has been imposed on front axle beam and steering knuckles for medium and heavy commercial vehicles. These are used in all vehicles with more than four or more wheels.

Terming it a good step, Focal Point Industrial Sheds Association president Rajneesh Ahuja said this would not only help auto parts' manufacturing industry, but also other industries.

However, he said that there is a need for more steps for helping the industry "First of all, one has to understand why China is giving cheaper products. The term loan on machinery there is 4%. In our country, it is 14%. This should be reduced. Similar is the case with working capital interest, which is higher in India. These are reasons why we don't have a level-playing field against other countries," Ahuja said.

He added that the industry should be made competent enough to deal with the situation on its own, so that there is no need for anti-dumping duty and other such steps.

Auto Parts Manufacturers' Association president Gurpargat Singh Kahlon also hailed the step and that there was a need for this to save the industry, which is "bleeding white in competition by the much cheaper products from China". "I just hope the government would take more such steps and adopt a multi-pronged policy to help the industry compete internationally, especially with China. If at all Make in India has to be turned into a reality, the government has to help manufacturers and slash interest rates," he added.

Source:- timesofindia.indiatimes.com