India's Tyre Sector Opposes Free Trade Liberalisation

21 May 2024 CW Team

The Automotive Tyre Manufacturers' Association (ATMA) has raised concerns about the potential liberalisation of tyre imports through free trade agreements. The association emphasised that India's domestic tyre manufacturing capacity is sufficient to meet the country's demand and any move to liberalise imports could negatively impact the local industry.

ATMA's chairman, Satish Sharma, highlighted that the domestic industry has invested heavily to enhance its production capabilities and quality standards. He argued that liberalising tyre imports would undermine these investments and harm local manufacturers who have built substantial capacity to cater to both domestic and international markets.

The association also pointed out that India's tyre industry contributes significantly to the economy, providing employment and supporting ancillary industries. The import restrictions currently in place help protect these economic contributions. Furthermore, ATMA suggested that easing import restrictions could lead to an influx of substandard tyres, posing safety risks to consumers.

ATMA's stance comes amid discussions about India's trade policies and the potential for new trade agreements with various countries. The association urged the government to consider the potential repercussions on the domestic tyre sector before making any decisions regarding import liberalisation.

In conclusion, ATMA strongly advocated for maintaining the current import restrictions to safeguard the interests of the domestic tyre industry and ensure continued growth and safety in the sector.

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