9.1. THE AUTOMOTIVE SECTOR OF INDIA
The automotive sector of India is large with considerable economies of scale. It is technologically sophisticated and is able to export large volumes of diverse automotive products to a large number of countries. We first highlight the growth in the volume of trade of India in the automotive sector in Table 9.1.
Table 9.1
VOLUME OF TRADE IN THE AUTOMOTIVE
SECTOR OF INDIA
($ Million)
Exports
Imports
Balance
2000-01 932 322 610 2005-06 3293 1021 2272 2010-11 11301 4177 7124 Source Department of Commerce, Ministry of Commerce & Industry, Government of India
(http://commerce.nic.in/eidb/default.asp)
Exports of India of automotive products have shown phenomenal growth during the last decade, crossing $11 billion by 2010-11. Today, these exports account for almost 5 percent of total Indian exports. Currently, India enjoys a trade surplus of over $7 billion in the sector. According to WTO, India is the 12th largest exporter globally of automotive products. Table 9.2 shows that in terms of total production of automobiles, India is ranked sixth in the world at almost four million vehicles. In fact, India now produces more cars than the USA, where the automobile industry originated. Also, the level of output of India is about twenty times that of the Pakistan.
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