Licenses And Certifications 6 September 2026
Goyal Cautions Auto Makers on Token Localization, Data Tracking
India's commerce minister warned automobile manufacturers that superficial localisation claims will not escape scrutiny, as the government will monitor import‑export figures and companies' IEC codes. Firms face tighter oversight and possible penalties if they rely on nominal localisation instead of genuine domestic production.
India's commerce minister Goyal has issued a stark warning to auto manufacturers about relying on nominal localisation strategies. The government plans to cross‑check company IEC (Import Export Code) data with import‑export statistics to spot superficial compliance.
- IEC tracking: Authorities will use IEC details to verify the actual volume of domestically produced parts.
- Import‑export stats: Discrepancies between reported localisation and trade data may trigger investigations.
- Potential penalties: Companies found exaggerating localisation could face fines or stricter regulations.
The move signals a push for genuine domestic sourcing rather than token compliance. Read the full story.
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