Sat Apr 12 04:36:20 UTC 2025: ## India’s Auto Component Sector Poised for Explosive Growth, Says NITI Aayog Report

**Mumbai, April 12, 2025** – India’s automotive component sector is on the cusp of a major expansion, with the potential to become a global leader, according to a new report by the NITI Aayog. The report projects the sector’s value to skyrocket from $20 billion currently to $145 billion by 2030, driven by the global shift towards electric vehicles (EVs), autonomous driving, and advanced technologies.

Currently, India holds a modest 3% share of the global traded auto component market. However, the NITI Aayog report highlights the untapped potential, forecasting a tripling of exports to $60 billion by 2030, resulting in a $25 billion trade surplus. This growth is expected to generate 2 to 2.5 million new jobs.

NITI Aayog Vice-Chairperson Suman K. Bery emphasized India’s strategic advantage in becoming a reliable and cost-effective manufacturing hub amidst global supply chain uncertainties. He cited the country’s expanding production capabilities, skilled workforce, and growing technological expertise as key strengths.

The report acknowledges challenges, including a near-neutral trade balance and a 10% cost disadvantage compared to competitors like China. These challenges stem from supply chain inefficiencies, high material and equipment costs, and limited penetration in high-precision segments.

To realize this ambitious growth, the NITI Aayog recommends a multi-pronged approach: targeted fiscal and non-fiscal interventions, including operational and capital expenditure support; strengthened supply chains through cluster development; investments in R&D and skill-building; and fostering international collaborations through joint ventures and free trade agreements. The report also stresses the importance of elevating quality standards and building a globally competitive brand for Indian auto components.

The report also notes the increasing integration of the automotive industry with advanced sectors like electronics, semiconductors, and artificial intelligence, forecasting a doubling of semiconductor chip costs per vehicle by 2030. This highlights the need for India to align its capabilities with global trends in EV technology and advanced driver-assistance systems (ADAS). The timely implementation of the report’s recommendations, the NITI Aayog concludes, is crucial for unlocking India’s full potential in the global automotive industry.

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