Manufacturing is key to growing at rapid rates, according to the G20 Sherpa Amitabh Kant. “I really believe that manufacturing has to be the key. Without manufacturing, it is not possible for India to grow at rapid rates. No country in the world has grown on the back of its services sector. It is important that we drive manufacturing,” said Kant at the 63rd annual SIAM convention.
Referring to the automobile components as the heart and soul of manufacturing in India, Amitabh Kant said that this sector was a catalyst for augmenting India’s high growth rate.
He further said that it was not possible for India to grow only on domestic demand, and exports play a crucial factor.
Every time India has grown at high rates, it has been on the basis of exports. Therefore it is necessary that India should be able to penetrate global markets and the automobile sector must really be the champion of penetrating global markets. This would require us to be productively the most efficient economy in the world, he said. “When people talk about shifting manufacturing from China and Plus One strategy, it is important to understand that it will just not happen until we become productively the most efficient economy,” he said.
The Indian Auto Component Inc.’s cumulative growth in the last five years has touched 4.1 percent, with the rate of growth (5.7%) in exports being double that of imports, thereby helping reduce the trade deficit, which, in FY19 was pegged at US$ 2.5 billion.
The India Auto Components Inc’s FY23 exports turnover was pegged at US$ 20.1 billion, up from US$ 19.1 billion a year ago. While the US and European Union, at around 32 percent contribution each, remained the top destinations for components exports from India, robust growth of 27 percent was also witnessed in exports of components to Latin America. In terms of parts, Indian Auto Components Inc. exports drive and transmission, steering, and engine components among others.