Auto sector performs well

India could become a major platform for export-oriented production in auto sector including built up units, design consultancy and ancillaries. Commending the success of the auto sector, the survey noted that 8220;this sector is a striking success story of a traditional Indian industry which has grown out of its roots in a protectionist regime into global competition thus contradicting stereotypes about the non-competitiveness of Indian industry.8221; Also the industry has performed well in 2001-02 and the current fiscal.

Attributing the excellent performance of the sector to low interest rates on demand intermediated by steady cuts in consumer loans prices with declining interest rates supported by strong export demand during the year.