Indian automobile to get priority at WTO talks

The Indian automobile industry is in an infant stage and needs protection for which top priority would be given to its interests at the WTO talks for free and regional trade agreements, Commerce and Industry Minister Kamal Nath has said.
"In cases of infant industries, we have to ensure that there is fair and equitable growth and calibrate our tariffs to commensurate with our growth. Automobile industry is also an infant sector and needs protection. This is our position at the multilateral trade body WTO as well", he said while addressing a meeting of Society of Indian Automobile Manufacturers here on Wednesday.
The government would accord top priority to the interests of the automobile industry during debate on trade-related issues in multilateral forums like WTO (World Trade Organisation) and negotiations for free trade agreements (FTAs), Nath said.
On the domestic industry's concerns that FTAs and regional trade agreements would lead to an inverted duty structure under which raw materials would be costlier than import of finished products, he said "trade agreements would work only if there is a level-playing field".
Heavy Industries and Public Enterprises Minister Santosh Mohan Dev assured the automobile industry of all possible help by way of incentives for export or excise duty cuts to sustain growth in the sector. Hardening interest rates for vehicle loans and appreciating Rupee have hit the sector.
In the first four months of this year, the performance of the automobile sector has been lower than what the government had expected, Dev pointed out.
The passenger car segment grew by 13.3 percent while the commercial vehicle sector by only 2.6 percent and the two wheeler segment has actually decelerated, the minister said.
"We are keenly watching the second quarter and if need be, we will certainly intervene to sustain growth", he added.
Dev said the heavy industries ministry has written to the finance ministry for excise duty cut and also favoured tax sops for companies that achieve a minimum threshold of export volume.