India has weathered the global economic downturn and is emerging as a globally competitive manufacturing hub for small, fuel efficient cars, a senior Indian official said last night.
Department of Industrial Policy and Promotion secretary Ajay Shankar told PTI, "India is emerging as a globally competitive manufacturing hub for small fuel efficient cars."
Shankar, who was in London to interact with the UK-India Business Council and the India Business Forum, said, though, export-oriented small and medium enterprises have been severely hit, 'fortunately the auto-sector in India has revived.'
In July, two large car manufacturing companies, Maruti-Suzuki and Hyundai Motors India Ltd have registered a growth rate of 20 per cent year-on-year. "That in turn has helped the entire Small and Medium Enterprise chain and the auto-component sector to get out of the woods," he said.
Indian car manufacturers were exporting cars mainly to the European markets where people are looking for cheap and fuel efficient cars owing to the economic downturn, he said.
Answering questions, Shankar said compared with other countries, 'the Indian economy has faired better' during the global economic crisis.
"The Budget has also improved the confidence of investors and the last 2-3 months have seen confidence re-emerge in the Indian economy," he said.
He added that the stimulus packages put in place by the government 'proved to have been well crafted and have resulted in positive results.'
Shankar said, in June the corporate profits in India have been 'better than expected.' In July, production of a number of auto sectors, cement and fast moving consumer goods have shown robust growth.
"The manufacturing sector is picking up earlier than expected in a more robust fashion," he said, adding, "India offers itself as an attractive destination for foreign direct investment."
"Indian growth story is again beginning to register its earlier growth momentum and India has become a very attractive destination for capital inflows."
He also emphasised that during the last 10 years, "Indian industries have moved towards becoming green and more energy efficient. "Cement, steel and fertiliser industries have shown remarkable results in achieving best global practices and standards in terms of energy efficiency and carbon-di-oxide emission."
Cement manufacturing units in India have achieved European standards in energy consumption and Co2 emission," he said.
