REVVING UP INDIA'S AUTO MANUFACTURING FUTURE

As India aims to triple its auto component exports by 2030, the country's manufacturing sector must overcome deep-rooted structural hurdles to claim its place in global value chains.

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India's automotive manufacturing sector is undergoing a significant transformation, bolstered by rising global demand, government support, and a strategic vision to increase its share in the global value chain (GVC). Yet, as highlighted in the NITI Aayog-CRISIL report titled “Automotive Industry: Powering India's Participation in Global Value Chains” (April 2025), the journey ahead is not without challenges.

India is currently the world's fourth-largest automobile producer, having manufactured nearly 6 million vehicles in 2023-24. Despite this impressive scale, India contributes a modest 3% to the global traded auto component market, valued at $2 trillion. The country's exports and imports of auto components each hover around $20 billion, resulting in a near-neutral trade balance. This equilibrium, while stable, masks deeper structural issues that limit India's competitiveness.