India today made a twin pitch to boost its exports of components to the world's largest auto market China, showcasing some of its prime products, and for Chinese investments for the fast developing industrial-auto clusters in various Indian cities.
A 23-member delegation of the Automotive Component Manufacturers Association of India (ACMA), which included top firms in the business, conducted a Tech Expo to showcase quality products from India to serve the Chinese market.
Their visit here has taken place in the backdrop of a study conducted by the ACMA highlighting a trade deficit in auto sector which has grown substantially to $ 2.8 billion last year in favour of China.
India's exports in the sector remained limited at few hundred million dollars.
Calling for more Chinese investments in the auto sector, India's Ambassador to China Ashok K Kantha told a India-China seminar on auto components that the overall trade deficit in India-China exceeds $ 35 billion in the total trade of about $ 66.44 billion.
Such a trade deficit is no longer sustainable, he said. Greater investments from China could be important driver of growth and pointed to the decision by China to set up two industrial parks with an investment of $ 20 billion.
While calling for more opportunities for exports to China ACMA officials such as Deep Kapuria, Chairman, Globalisation and Past President of ACMA expressed concern over cheap Chinese products flooding the Indian retail market.
ACMA released a study of consumers' buying behaviour, the market characteristics, the general macro-economic conditions, competitiveness of the Chinese auto components at the seminar held at the Indian Embassy today.
The study has been conducted with Avalon Consulting.
Source : http://economictimes.indiatimes.com/