Although Orissa has attracted investments worth more than Rs 9 lakh crore across sectors, the state has received only one major investment in the auto component manufacturing space.
Domestic auto component industry has been growing at 20% per annum since the year 2000. This figure is projected to remain constant (at about 15-20%) till 2015. Meanwhile, the sector is touted to reach a landmark figure of US$40 billion in 2015, growing four-fold from the US$10 billion mark of 2005-06.
Expert speak
At the recently held Design Awareness Seminar for auto components and engineering ancillaries industry at Gurgaon, Suman Jyoti Khaitan, senior vice-president, PHD Chamber of Commerce and Industry remarked that most of the Indian auto component manufacturers operate independently, with little investment and on large scale. Mr Khaitan noted that government interventions for the automotive sector will aid manufacturer work on building design capability in order to win over and retain the buyer on a sustained basis in the long run.
Speaking at the same event, Vikas Jain, president of Gurgaon Chamber of Commerce and Industry said that innovation and cost trimming hold the key to meet the global challenge of increasing demand from developed countries and competition from other emerging economies.
A senior government official highlighted that the government is planning to come out with an exclusive policy for auto component manufacturers as Orissa has the potential to emerge as a hub in automotive component manufacturing.
Priyanka Roy Chowdhury |
Orissa industries department is contemplating a dedicated policy catering to automotive component manufacturing. This is being done in order to draw interest of prospective investors for the state. As the domestic auto sector has picked up pace in recent days, investment in ancillary departments like automotive component manufacturing is expected to expand. The state government is eager to cash in on this trend to churn out greater revenue.
