Abstract:

The report assesses India’s automotive sector’s current role and highlights its modest ~3 % share in the global automotive component trade despite being the world’s fourth-largest vehicle producer. It projects automotive component production rising to about $145 billion by 2030 with exports tripling to $60 billion, boosting India’s share in global value chains and creating millions of jobs. The analysis identifies structural cost disadvantages, gaps in high-precision segments, and limited global integration as key challenges. It recommends targeted fiscal and non-fiscal policy measures—including manufacturing support, cluster development, skill enhancement, R&D incentives, and international collaboration—to strengthen competitiveness and GVC participation.