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India and Globalization - varnamvarnam
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India and Globalization

The automotive industry is now turning to India for manufacturing low-cost, high-quality components.

bq. “Carmakers Around World Are Turning to India for Parts”:http://www.nytimes.com/2003/06/20/business/worldbusiness/20PART.html: The demand has come even from China, a rival to India in low-cost manufacturing. And the orders are flowing throughout India’s auto parts industry, to subsidiaries of Ford, General Motors, Toyota Motor and other major carmakers; to global auto parts leaders like Delphi and Visteon; and to homegrown auto parts makers, including Bhart Forge and Hi-Tech Gears.

The auto parts exports is not comparable to the software industry yet. They are only 0.1 percent of the 1 trillion auto parts industry. The competition now is with countries like Mexico and Brazil which are the other low-cost manufacturing centers for auto parts.

A side effect of this globalization could be an improvement to the Indian legal system to provide stronger support for international business contracts.


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