Auto sector asks for rupee trade with African nations
The Dollar Business Bureau
Indian automobile industry has approached the government to consider a rupee-based payment system for trading with African nations since, as it said, the sector faced hurdles in the dollar denominated pay out from these countries.
“We have approached the Ministry of Commerce for rupee trade with African countries as we are facing a challenge in dollar trade in these big export markets like Algeria and Nigeria,” said Sugato Sen, Deputy Director of Society of Indian Automobile Manufacturers (SIAM).
Sen said since some African countries cannot make payments in dollars, Indian automobile industry is witnessing a limited trade with these nations. He urged the Ministry of Commerce to negotiate rupee trade terms with these countries.
The industry has also asked for negotiating of FTAs with more Latin American countries such as Chile, Columbia and Peru to increase automobile exports from the country.
The total automobile export in the year 2015 -16 was around $8.86 billion, with shipments to Africa alone accounting for 30-35%.
The African countries have been facing hurdles with dollar payment due to falling prices of crude and commodities.
The major export markets for the Indian Automobile industry are Algeria, Morocco and Nigeria.
Since 2004, Africa, ASEAN and Latin America are among the fastest growing markets for India’s automobile exports.