Auto component exports from India expected to grow seven-fold
Automotive components manufacturing is expected to get a major boost with the ‘Make in India’ initiative and the industry hopes to increase its overseas shipment by seven times in the next ten years. “When the prime minister put forward the idea of Make in India, several Indian as well as foreign industrialists have stepped up to realise this dream. The government is attempting to do everything to meet industry’s expectations. Currently, the whole world is watching our steps closely. They know India is possibly the biggest market right now,” Heavy Industries & Public Enterprise Minister Anant Geete said at the national conference of Automotive Component Manufacturers Association of India (ACMA). The last decade has been profitable for India’s auto component industry, which is currently estimated to be around $40 billion. It grew at 12.1% during the period. Despite the global slowdown that led to a weak business environment in the domestic market, the auto component industry has grown at 11.1% in 2014-15, the highest in the past four years. “The automotive sector is clearly an engine that will power India’s manufacturing sector to a greater heights. The automotive component industry’s number is astonishing despite a stagnant global economy; indeed, a success story for India and Make in India,” said Jayant Sinha, Minister of State for Finance. During 2014-15, auto component export recorded a growth of 11.4% compared to the growth rate of a year ago, while the outbound shipment registered a compound annual growth rate of 29% over the last six years. The exports touched $11.2 billion during the last fiscal, cloaking a CAGR of 16% per year over the last ten years. Despite a significant growth in exports, the industry’s total import remained higher, at $14 billion, growing at 7.5%, and exceeding the export by nearly 25% during the last financial year. India’s auto component industry exports products to 160 countries, growing at 15% per year. Europe is the major importer of Indian products, accounting for 36.39% of the country’s total export. Asian countries buy 25.29% and North America 23.25% of the total auto component shipped from India. India’s auto component sector has grown ahead of any other manufacturing segment in the last decade. The industry which contributes to 5% of the country’s GDP, aims to increase the share to 12% by 2026. As part of efforts to promote eco-friendly vehicles in India, the government launched the website of FAME - Faster Adoption and Manufacturing of Hybrid and Electric vehicles. The online portal will encourage vehicle buyers to opt for electric and hybrid vehicles to get incentives up to 1.38 lakh.
September 04, 2015 | 2:48pm IST.
to success.