Tripling Auto Component Exports to $60 Billion by 2030

12 April 20251 min read

Why in the news

A NITI Aayog report laid out how India can treble its auto component exports by 2030 and become a leading global player.

Indicator	Target / outcome
Export value	Triple to $60 billion in five years
Trade surplus	Nearly $25 billion
Global value-chain share	3% to 8%
New jobs	22.5 million
Total direct jobs	34 million

Focus on high-value manufacturing with strong, targeted policy backing.
A production support scheme: operating-expenditure help for scaling selected components and capital-expenditure help for tools and dies.
Non-fiscal steps: business improvement support, joint ventures, FTAs, Industry 4.0 adoption and higher quality standards.
A vibrant R&D ecosystem with financial incentives across product categories.
Incentives to draw skilled foreigners and retain skilled Indians, on the lines of China’s Thousand Talents Program: right to buy a residence, easier visas and assured long-term jobs.

Current schemes mentioned: FAME, PM EDRIVE and the PLI for auto components.
Suman Bery, NITI Aayog Vice-Chairman, urged a look at the returns from these schemes, with a reasonable tax flow back within a reasonable time.

Localisation matters, but should be balanced with competition to spur innovation.
India should rethink its competition policy; local champions should not be shielded forever.

Test yourself

1. By what value does NITI Aayog's report aim to raise India's auto component exports in about five years?

The goal is to triple exports to $60 billion.

2. According to the NITI Aayog report, India's share in the global auto components value chain could rise from 3% to what?

The share is projected to climb from 3% to 8%.

3. Which Chinese programme did NITI Aayog cite as a model for attracting skilled talent?

Incentives similar to China's Thousand Talents Program were suggested.