Auto Components and Macro Growth

India’s automotive components manufacturing industry is projected to grow significantly in the global auto supply chains. Local companies are anticipated to experience a rapid growth in market share in the upcoming years.

- Tanmoy Ganguli

The auto component manufacturing industry serves as a vital sector that not only fuels the growth of the global automotive industry but also plays a pivotal role in driving macroeconomic growth, development and generating substantial employment opportunities. Additionally, the industry has witnessed remarkable growth in the demand for auto components globally, further reinforcing its importance and impact.

Importance of the Industry

Currently, the overall Indian auto components industry accounts for 2.3% of India’s GDP. Moreover, it is set to become the third largest global industry by 2025. A recently-issued research states that the auto component exports from India are expected to expand five times over the next ten years. It is imperative to highlight that the sector’s shift towards sustainable mobility, which is being facilitated by the government through various initiatives, has accelerated the growth of this industry tremendously. Initiatives such the PLI scheme and FAME scheme have stirred an exponential growth in the industry.