Minda also said these interventions will need to be sustained over a long term and are not knee-jerk reactions to immediate global disruptions such as the tariffs proposed by US-President Donald Trump.
“We are going to suggest sector wise suggestions to the government aimed at import reduction,” he said, adding these could be policy interventions or incentives the centre can offer. Assocham is currently collecting data to firm up these proposals, and these suggestions will seek tweaks in India’s trade policy.
According to Minda, there must be a study to identify instances of import dependence that an industry has on a single country. “Today or tomorrow, we may have some geopolitical differences,” he said.
Downplaying the impact of Trump tariffs on the auto component sector, Minda said supply chains do not develop overnight. “The most impacted sectors are textile and pharmaceuticals, but the auto sector is not affected (so much),” he said, adding it takes over a year for designs to develop and supplies to start.
But, some long-term solution is needed for a win-win situation to come about, the president designate said.Responding to queries on China’s rare earth supply curbs, Minda said, “There is a disruption we all know. The industry is trying to find a solution through alternative technologies.”Commenting on measures needed to boost domestic manufacturing, Minda said just offering incentives will not be enough. “Not everything can happen because of government incentives. Ease of doing business for micro, small, and medium enterprises also needs to improve,” he said.