New Delhi, Aug 18 (IANS) Automotive Component Manufacturer Association of India (ACMA) Wednesday urged the government to look into the inverted duty structures in free trade agreements (FTAs) which it intends to sign.
‘We want the government to look into this matter of inverted duty structure in FTAs. This step is important to protect the interest of the auto component manufacturers in India,’ said Jayant Davar, president, ACMA.
The inverted duty structure in FTAs would mean the import duty on finished products would be lower than on parts or components used in manufacturing of the parts.
‘This (inverted duty structure) would affect our competitiveness in other markets and that is why it should be looked into,’ Davar added.
The association also asked the government to look into the possibility of establishing FTAs with countries like Brazil where it feels the sector has a readymade market for its products.
‘India should consider establishing FTAs with countries like Brazil, South Africa and Iran who already have a ready market for our products,’ said Srivats Ram, vice president, ACMA.
The association also said the auto component sector in India’s turnover grew at 20 percent and stood at $22 billion for fiscal 2009-10.
