Make-In-India Attracts Global Tyre Majors Over Rs 3000 Cr Investment Likely

(MENAFN- KNN India) New Delhi, Jun 26 (KNN) In a significant development for India's manufacturing sector, major international tyre manufacturers including Michelin, Bridgestone, and Goodyear have announced plans to invest in production facilities in the country.

This move comes in response to a government scheme that links import allowances to domestic investment, effectively encouraging global players to "Make in India."

Industry insiders estimate the combined investments could reach approximately Rs 3,000 crore (roughly USD 400 million USD), marking a promising start to the government's initiative aimed at boosting local production.

The scheme, introduced by the Department for Promotion of Industry and Internal Trade (DPIIT), was implemented alongside import restrictions designed to stimulate domestic manufacturing.

Yokohama Tire and Birla Tyre are also considering joining this investment wave, with Yokohama potentially emerging as the largest investor.

The Japanese company is exploring plans for a plant in Haryana, notable for its commitment to gender diversity with nearly half of its projected workforce being women.

A senior government official, speaking on condition of anonymity, stated, "We are seeing the results of the steps we have taken and we are expecting more companies to come and make in India." The official highlighted that these investments are expected to create hundreds of new jobs in the country.

The tyre sector's positive response to the government's policy is being viewed as a potential blueprint for other industries, particularly the electric vehicle (EV) sector.

The government is considering a similar approach for EVs, allowing lower import duties for a limited period in exchange for commitments to local manufacturing and component sourcing.

This strategy aligns with Prime Minister Narendra Modi's efforts to attract high-profile investors like Tesla's Elon Musk. While Musk recently postponed a planned visit to India, citing scheduling conflicts, government officials remain optimistic about future discussions.

Meanwhile, other EV manufacturers such as Vietnam's Vinfast are showing interest in the proposed policy, though they have suggested some modifications.

The Ministry of Heavy Industries is currently collaborating with stakeholders to finalise guidelines before initiating a bidding process in the coming months.

(KNN Bureau)

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