Commerce and Industry Minister Piyush Goyal on Wednesday said the government will take a serious note if an auto company does not allow its component suppliers to locally manufacture the components.
He also expressed hope that the industry will continue to promote manufacturing of components in India.
The minister was addressing the 62nd Annual Session of the Automotive Component Manufacturers Association of India.
"I would appeal to all the auto companies that if any auto company does not allow the auto component suppliers to localise, the government will be taking serious note of that and any effort to force the components to be imported from preferred suppliers overseas only, or at prices which may necessary not be competitive, is something that will be taken as a serious note of," Goyal said.
He said that in case any of the auto companies is pressurising any auto component manufacturer to import the components instead of localising them here, "I would urge you to please come straight to me and talk to me without hesitation".
According to him, it was brought to his attention that some auto ancillaries which have collaborations with probably other companies around the world are also facing some stress and some pressure from their joint venture partners.
"This is the matter the government will take (up) and view very seriously and if at all any joint venture partner is unhappy, (it) is free to leave," he said, adding that in such a case Indian companies can give them a fair and honourable exit.
But if anybody is being forced on unfair terms, the domestic firm should approach the authorities and the government will be take it up with its counterparts in other countries, the minister emphasised.
"I can assure you, the government will fully support and bat (for) fair play and business dealings between Indian companies and foreign firms because India has never discriminated with any foreign company," he added.
The minister suggested the industry to focus on five areas including quality, increased value addition in India and focus on new markets.
It is important that the industry gets so beautifully organised that the informal sector also comes into focus when it is dealing with quality and fair competition, he said.
"If in any market you are facing non-tariff barriers because of which you are not able to export, I want you to share it with us, we will engage with their ministers and officials... I am also ready to take reciprocal actions in the interest of your industry," Goyal said.
Talking about free trade agreements, he expressed hope that India-Australia trade pact and the income tax law change which will help the Indian IT sector significantly will be approved by the Australian parliament by the end of this year.
"We hope that we will open 2023 with the entry into force of Australia-India agreement also," he added.
He also urged the auto component sector to aim for taking exports to USD 100 billion by 2030.
