FU­ELLING WOES

Auto components India - - EDITORIAL - Bhar­gav TS Ex­ec­u­tive Ed­i­tor s.bhar­gav@nextgen­pub­lish­ing.net

In­dia daily con­sumes 4.5 mil­lion bar­rels of crude oil (1 bar­rel is about 159 litres), the third high­est in the world after the US and China. With only very lim­ited do­mes­tic oil re­serves, In­dia meets over 80% of its oil needs through im­ports. The prices of petrol and diesel in In­dia have risen to their high­est level since late 2013, mainly due to ris­ing crude price and a de­pre­ci­at­ing ru­pee. This is an alarm­ing sit­u­a­tion for both the con­sumers and the ve­hi­cle man­u­fac­tur­ers as fuel cost is one of the de­ter­mi­nants of ve­hi­cle pur­chase.

In 2013, when the price of petrol reached its peak of Rs 76.06/ltr, it al­tered the ve­hi­cle buy­ing pat­tern in In­dia. The do­mes­tic price of petrol and diesel will de­pend on the price of crude oil in the in­ter­na­tional mar­ket and the pol­icy pref­er­ences of the gov­ern­ment as it heads to the gen­eral elec­tion in 2019. The present crude price rise is blamed on ris­ing geopo­lit­i­cal ten­sions where prices are headed to next is any­body’s guess.

A ma­jor part of the re­tail price of petrol and diesel is taxes, both Cen­tral and State. The Cen­tre can soften the im­pact of spiralling fuel prices by re­duc­ing the ex­cise duty. Soar­ing fuel price af­fects the en­tire econ­omy and trig­gers in­fla­tion. It is very ap­pro­pri­ate and timely for the gov­ern­ment to step in to ar­rest the sky-rock­et­ing fuel price.

The cur­rent edi­tion of Au­to­Com­po­nentsIn­dia is our an­nual aero­space in­dus­try spe­cial, where we high­light the im­por­tance of the in­dus­try, es­pe­cially for In­dia. The In­dian pri­vate sec­tor aero­space in­dus­try is still at a nascent stage as it has been dom­i­nated by the public sec­tor. The pri­vate sec­tor, act­ing in as­so­ci­a­tion with the PSUs and multi­na­tional com­pa­nies, is sup­ply­ing di­rectly and in­di­rectly to the OEMs and Tier-1 sup­pli­ers. From this ad­van­ta­geous ground, the In­dian aero­space in­dus­try is ready for a lift-off. It is once again on the global radar, though for a dif­fer­ent rea­son, for air­craft or space­craft spares.

Many peo­ple asked us, why aero­space in the Au­to­Com­po­nentsIn­dia mag­a­zine? The an­swer is quite sim­ple as most of the auto com­po­nent man­u­fac­tur­ers are di­ver­si­fy­ing into aero­space com­po­nents and ex­port­ing them across the globe. Wher­ever there is an auto hub, the gov­ern­ment is pro­mot­ing an aero­space park to work on syn­er­gies. In the com­ing years, we ex­pect more such syn­er­gies as we see a clear sky.

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