A stable government framework has led to the development of the Indian auto-components industry. Accounting for 2.3 per cent of India’s Gross Domestic Product (GDP), the sector employs as many as 5 million people, both directly and indirectly. The growing presence of global automobile Original Equipment Manufacturers (OEMs) in the Indian manufacturing landscape has significantly increased the localization of their components in the country.
The Indian auto-components industry has experienced healthy growth over the last few years. The Auto Components industry exports are currently valued at USD 14.5 bn. India is an emerging global hub for sourcing auto components. It offers a favourable scenario with a trade policy without restrictions on import-export and a 100% FDI inflow.
The auto-component industry of India has expanded by 23.9 per cent to reach a level of US$ 80 billion by 2026.
100% FDI allowed under the automatic route.