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India will not become

a dumping ground for

second hand cars: minister

NEW DELHI: India will not be allowed to become a dumping ground for second hand cars from foreign countries, a minister said on Wednesday.

Commerce and Industry Minister Kurasoli Maran told delegates at an automobile exhibition that the government was aware of the domestic industry's concern over the possibility of "large scale dumping" of such vehicles.

"One can only say that this nascent industry .... which has achieved so much in such a short span cannot be left in the lurch easily," Maran said.

"The government will take into consideration all aspects of safety, pollution norms, vehicle testing in this regard. Under no circumstances shall we permit India to become a dumping ground for junk," he said.

India's automobile industry had a combined turnover of 10 billion dollars last year and accounted for four percent of gross domestic product.

"Since the industry has strong backward and forward linkages with other sectors of the economy, investment in this sector tends to have a multiplier effect on the economy as a whole," Maran said.

In the April-October period of the fiscal to March 2000, the car industry grew by 26.1 percent year-on-year.

"The new surge in car demand further indicates that India's car market is likely to cross the half million mark for the first time this year. This augurs well for the industry," Maran said.

India's automobile sector was opened up in 1993 in line with the economic reforms of 1991.

Major carmakers such as Suzuki Motor Corp. General Motor Corp., Ford Motor Co., Daewoo Corp., Fiat, Mercedes-Benz A G and Hyundai Motor Co. Ltd. have entered the Indian market.

"The Indian automobile industry has emerged as one of the most vibrant sectors of the Indian economy," Maran said.ÑAFP