He said the ministry has been closely interacting with the automotive industry, especially to find ways and means to overcome the recent slow down in growth.

"In an effort to give fillip to industrial production, the plan outlay in key infrastructure sectors of energy, transport and communications has been increased by over 35 per cent during 1998-99, '' he added. This step-up in investment is expected to increase industrial activity which would benefit the automotive sector. Lauding the country's component industry, Bakht said the sector will have to shoulder the responsibilityin ensuring the success of an emerging and modern auto industry in India.

The Automobile Component Manufacturing Association (ACMA) has set an export target of $ 1 billion by 2005. The auto component sector has ISO 9000 certification for 190 companies.Several automobile giants have set up base in the country. World capital markets have recognised India as one of the most significant emerging markets. "I believe that the automotive industry will act as a growth accelerator for the India economy in the next century", he added. For this, the auto component sector will have to shoulder tremendous responsibility in ensuring the success of an emerging and modern auto industry. Dr Michael Peters, chief, Messe Frankfurt, the organisers of Automechanika said India ranks among the fastest growing automobile markets.

At the Automechanika India here, "we are for the first time offering a professional trade-fair forum which will help international suppliers gain a foothold in the Indian market and give Indiancompanies a gateway to the world market''. Over 200 individual companies from 10 countries are participating at the show being jointly organised by the ACMA, Messe Frankfurt and Confederation of Indian Industries (CII).

He also ruled out scrapping of the Foreign Investment Promotion Board.