1566726106  672x385 - INDIA'S AUTOMOBILE HUBS

The automobile industry occupies a prominent place in the Indian economy. In Financial Year (FY) 2015-16, the industry contributed 7.1% to India’s Gross Domestic Product (GDP) and 49% of the nation’s manufacturing GDP. It has deep forward and backward linkages with several key segments of the economy. It is undebatable that an efficient transportation system is central to rapid industrial and economic development of a country. Given how closely linked the automobile sector is to the transportation system, its relevance to economic development becomes magnified.

Manufacturing clusters in India have existed for decades. ‘Clustering’ describes the propensity of manufactures within a specific industry to locate operations in the same geographic area.1 A cluster is identified by the product and place where it is located. Be it the knitwear of Ludhiana, textiles of Tirupur, diamond cutting and polishing of Surat or pharmaceuticals of Baddi; industry clusters across India continue to add substance to the manufacturing sector in the country.

These clusters usually form on the basis of availability of raw material, skilled labour and other support infrastructure. It is interesting to note that in all cases where a cluster develops, a symbiotic relationship can be noticed between manufacturers, part suppliers, related services and support industries.2 This holds true for all automobile hubs in India which are presently at the forefront of the automotive and automotive component sector’s growth in the country. Contrary to the initial stages of industrial development in India, when the development of automobile industry was sporadic, a high level of organization is visible today.

Following automobile clusters are paving a path for the booming automobile industry in India, all set to reach a market size of USD 300 Billion by 2026



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