The emergence of India as a strong world economic power is receiving widespread recognition in the Asian region and beyond. India is also set to become a major player at the global level by 2020 and assume a leadership role in international trade commensurate with its growing importance. Though the auto market continued to encounter bumby rides during August, both the Government and the industry are more than sure that the next five years would prove a golden period for the Indian auto sector. This prediction is based on the huge market potential and the well-channelised efforts of the Government towards making the industry, itself an engine of growth, viable not only to generate greater employment but help the economy rebound. Also, there are clear signs of growth revival with the M&HCV segment recording a 9.6 per cent year-on-year rise in domestic sales.
According to latest statistics, the Indian auto sector turnover increased from $6.7 billion in 2003-04 to $35 billion in 2013-2014, while exports grew from $1 billion to $10 billion in the corresponding period. Meanwhile, an ACMA-McKinsey study reveals that Indian suppliers still account for one per cent of overall global exports of $1006 billion, indicating a significant opportunity to step up Indian exports. The report also suggests that Indian suppliers are well-positioned to benefit from these encouraging global trends and can easily enhance their international presence in the next few years. Based on market comparisons, supplier and OEM surveys, the Indian auto companies can nurture a three-pronged 2020 aspiration.
Industry experts also feel that the auto industry is a critical cog in the wheel of the Indian manufacturing sector. The overall attempt is to transform India into a global manufacturing hub, leaving huge export potential in the domestic auto market to be tapped. This is the right time to invest in technology, innovation, training and resources to build India’s economic future. Also, the new Government under the leadership of Prime Minister Narendra Modi has unleashed a new lease of optimism, envisaging a higher growth trajectory for the economy.