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 here to interact with the UK-India Business Council and the India Business Forum said, though, export-oriented Small and Medium Enterprises (SMEs) 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.