India Aims to Treble Auto Component Exports to $60 Billion by 2030, Says NITI Aayog

India is gearing up for a significant leap in the global automotive supply chain, aiming to triple its auto component exports to $60 billion by 2030. This ambitious target was detailed in a recent report by NITI Aayog, titled “Automotive Industry: Powering India’s Participation in Global Value Chains.” The document lays out a strategic roadmap to elevate India’s position as a global hub for automotive manufacturing and exports through targeted reforms and investments.

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Automotive Industry's contribution 

The automotive sector is a cornerstone of India’s economy, contributing 7.1% to the national GDP and nearly 50% to the manufacturing GDP. Yet, despite being the world’s fourth-largest vehicle producer, India accounts for only 3% of global auto component trade—a gap that highlights the untapped potential in export growth.

Navigating headwinds and seizing opportunities

As the global automotive industry pivots toward electric mobility, advanced manufacturing, and sustainability, India is recalibrating its strategy to align with these evolving trends. A key focus area is strengthening its footprint in high-precision components, especially engine and transmission systems, where its current global market share stands at just 2–4%.

However, India's path to becoming a competitive exporter isn’t without hurdles. The sector contends with elevated raw material prices, logistics inefficiencies, and energy costs, which collectively result in a 10% cost disadvantage compared to China.

To address these challenges, the NITI Aayog report advocates a combination of fiscal and policy reforms—ranging from operational subsidies and R&D investments to intellectual property facilitation and the development of industrial clusters for enhanced ecosystem collaboration.

Vision 2030

Looking ahead, India’s automotive industry is targeting a production output of $145 billion by 2030. This growth is expected to generate 2–2.5 million new jobs, underpinned by a strong export drive. Flagship initiatives such as Make in India, Atmanirbhar Bharat, the PM E-Drive scheme, and the Production Linked Incentive (PLI) program have already channeled over Rs 66,000 crore into the sector, laying a solid foundation for sustained progress.