in India The Indian automotive components industry - Teknikföretagen

ForewordIndia has been one of the world’s fastest growing economies during the last fewyears. However, India has still not recovered from the effects of the former inwardorientedpolicies it followed until the 1990s. Economic reforms started taking placein the beginning of the 1990s when India started opening up gradually. The questionis whether India can implement the required policy changes effectively and developa conducive business climate for industry to grow, and thus be able to sustainthe strong rate of growth it has achieved over the past few years.During this time there has been increasing confidence in the manufacturing sector inIndia and its long term potential as a manufacturing hub. Importance of the engineeringindustry is supreme in this regard and it also plays a crucial role in the economicgrowth of the country. To understand the driving forces of India better, it is essentialto develop an understanding of prevailing fundamentals in the engineering industry.In this report we provide an overview of the engineering industry in India withrelevant facts regarding the structure and size, growth rates, main challenges, trendsin international trade, research and development initiatives, as well as an indicationof future outlook of the main segments in the engineering industry. It is a series ofseven different reports that includes an overview of the engineering industry, theautomotive industry, the machinery and equipment industry, the electrical machineryindustry, the automotive components industry, the electronic equipment industryand the fabricated metal products industry.This series of seven different reports has been commissioned by Teknikföretagen,the Association of Swedish Engineering Industries, to provide a detailed overviewof the Indian engineering industry covering various aspects of the main segments.It is hoped that the reports will help identify areas of business interest for Swedishengineering companies and give the reader increased knowledge of the presentindustrial development in India.The reports have been authored by Mr. Rahul Sanyal. He is an economist from NewDelhi in India, and has been appointed by Teknikföretagen to prepare these seven reports.Stockholm, September 2008Anders RuneChief Economist