What positive impact of the ‘Make in India' initiative can be seen on the forging industry? How far do you think it will boost the growth and exports?
Make in India initiative is a good move in the right direction to give the necessary boost to the overall manufacturing sector. It has created an all-round positive business environment and sentiment. With the revival in domestic auto market and higher export sales, the forging component sector prospects look promising. The campaign has definitely been fruitful for certain segment of the forging industry and we are anticipating an increase in demand from the non-auto sector in the medium and long term.
In the non-auto space, the sunrise sectors for forgings in near future are defence, aerospace and railway procurement. Indian government emphasis on defence and aerospace equipment as part of the ‘Make in India' campaign to encourage manufacturing and attract foreign investment has led many companies to seek licences to make defence & aerospace equipment locally. This will open up more business opportunity for the domestic forging industry.
Having said this there are certain issues that are eying for immediate attention. The need of the hour is to address issues like faster clearance of mega infrastructure projects which have been pending for a long time. Investments in the development of overall infrastructure being executed on priority, both in the public and private sectors, will result in pickup of demand, among other things, in commercial vehicles, construction industry and capital goods sector. All these will have a multiplier effect on the Indian forging industry.
How does the association help its members to gain necessary confidence in the uncertain market conditions?
The Association of the Indian Forging Industry's (AIFI), key role is to promote and develop the Indian forging industry so as to meet the demands and expectations of the stakeholders, this it seeks to achieve by improving and providing a conducive business environment for its members. AIFI also keeps its members abreast of the latest technology in forging and market intelligence.
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