Auto, pharma, IT sectors to propel India Inc: Study

The country's automotive, pharmaceutical and IT services sectors will reach critical mass this year, propelling Indian globalisation strategies, according to a survey by a cross-border mergers and acquisitions analysis firm IndusView.

Auto sector

The Indian auto component industry is likely to almost double to $18.7 billion by 2009 and reach about $40 billion by 2014. Further, India is expected to move ahead of the UK and Canada as a car-producing country by 2008. Its car production capacity is expected to surpass 2 million units by 2008 from the current capacity of more than 1.4 million units. It has already surpassed Korea to become the third largest car market in Asia-Pacific after China and Japan.

"Since only eight out of every 1,000 people in India own a car, compared with 16 in China and 500 in developed markets, it is clear there is a lot of room for growth," said Mr Bundeep Singh Rangar, Chairman of IndusView.

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