Commerce and Industry Minister Piyush Goyal on Wednesday urged auto component manufacturers to prioritise safety and integrate better safety features into their products, saying the industry should not wait for the government to identify and address potential risks.
Addressing the 66th Annual Session of the Automotive Component Manufacturers Association of India (ACMA), Goyal said Indian auto component manufacturers need to focus on moving up the value chain, reducing import dependence and delivering high-value solutions.
“Let's focus on one more area — safety. Why do you leave it to the government to worry that if there is a flood or if there is an unfortunate event?” Goyal said.
His remarks come as Indian auto component makers seek to deepen their integration into global supply chains, where safety, quality and technology standards are increasingly critical to competitiveness.
“Now convert your local businesses to global businesses. And for those products where you still need to bring resilience in your supply chain, to insulate and protect yourself from future black swan events — move up the value chain. I think it's time we started delivering integrated, very high-value solutions,” the minister said.
Goyal linked the greater focus on safety with the industry’s broader ambition to move up the global value chain, saying Indian manufacturers would need to strengthen their capabilities to compete in international markets.
Auto components account for a significant share of India’s exports, but the sector continues to run a trade deficit. Hyundai Motor India Managing Director and CEO Tarun Garg, speaking at the ACMA event on Wednesday, said the sector has a trade deficit of $1.4 billion.
India exported auto components worth around $24 billion in FY26, while imports stood at about $25.4 billion, Garg said. With technology imports contributing to the widening deficit, Goyal said technology, including artificial intelligence, would have to play a bigger role in the sector, particularly in improving quality control.
The minister also highlighted the opportunities emerging from India’s recent free trade agreements, which have opened markets worth around $9 trillion to Indian exporters. However, he said greater market access would need to be backed by improvements in quality and the ability to supply high-quality products to global markets.
To move up the global value chain, Indian auto component makers need to focus on building quality products and materials that can meet global requirements, he said.