India poised to become world leader in automobile sector: UNCTAD
The automotive industry has been identified as one of the key industries in which India has the potential of becoming a world leader, the UNCTAD (United Nations Conference on Trade and Development) said in its annual global investment report. The report said that inflow of FDI in India during the last financial year was $34 billion, up 22% from previous year and more than one third of the total inflow of $41 billion to the entire South Asia region. “The country accounted for the majority of greenfield investment projects announced by global automakers and first-tier parts suppliers in South Asia during 2013–2014, including 12 projects above $100 million,” UNCTAD said in a press statement after releasing the report. India’s automotive industry accounted for about 20% of the country’s total manufacturing value added. By producing 18 million vehicles in a year, the seventh largest automobile producer in the word is likely to move up in the global ranking. “In the 'Make in India' initiative, the government identified 25 industries in which India has the potential to become a world leader, including the automotive, chemicals, pharmaceuticals and textiles industries,” the UNCTAD report said. According to the Department of Industrial Policy and Promotion (DIPP), Indian automobile industry received FDI worth $11.4 billion from April 2000 to November 2014. And major sources of FDI in the sector included Japan, the United States and Korea. Influx of multi-national enterprises in the Indian market has also propelled the growth of domestic automobile companies with overseas collaborations. Many Indian automakers have also extended their operations in countries like Bangladesh and Nepal. “Investment from the growing automotive industry in India shows the potential of a positive spillover effect to productive capacity-building in South Asia as a whole,” the report said. With the availability of cheap and skilled manpower, India has emerged as a car manufacturing hub in the past few years. A number of multi-national automobile companies have set up manufacturing units in India and aim to explore the international market by exporting vehicles made in India. India’s automobile export has increased by 5.73% during April-May this year compared to the same period last year, the Society of Indian Automobile Manufacturers (SIAM) said in its report released earlier this month.
June 29, 2015 | 3:57 pm IST.
to success.