Auto Sector Urges End-to-End Value Chain Localisation for Global Manufacturing Resilience

Gist Industry leaders from major automobile manufacturers have urged a strategic shift in India's automotive sector, moving away from simple local assembly toward comprehensive, end-to-end localisation of the value chain. This pivot aims to transition India's manufacturing policy from basic import substitution to building resilience against global supply shocks and positioning the country as a global hub. For civil services aspirants, this highlights the evolving requirements of industrial policy, demonstrating that true global competitiveness now demands domestic capabilities in high-tech manufacturing and raw material processing, rather than just relying on low-cost labour for assembly. Background Historically, a significant portion of India's automotive manufacturing has relied on importing high-value or critical advanced components and assembling them domestically, often to navigate high import tariffs on fully built units. While initiatives like the Production Linked Incentive PLI scheme aim to boost domestic manufacturing, the current model still leaves the industry exposed to global supply chain shocks. True localisation, as demanded by the industry, requires moving upstream in the supply chain—developing domestic capabilities to secure raw materials, process them, and manufacture advanced electronics and…