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 which are currently valued at USD 13.3 bn in 2021 are expected to go to $80 billion soon. 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.
Indian Auto Component Industry registers with the highest-ever turnover of $6.5 Bn, grows 23% during 2021-22.
100% FDI allowed under the automatic route.
Share in India's GDP
CAGR (over 6 years)
Auto component exports
The rapidly growing auto market in India is expected to reach $300 bn by 2026
Automotive aftermarket segment in India is expected to reach $32 bn by 2026
Auto Components industry exports to grow 5X in next 10 years
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