Arunachal Pradesh Arunachal Pradesh

The Indian Auto Component Industry has a phenomenal growth record for decades, especially after opening up the Indian market from restricted license-raj to open competition after 1993 onwards. The Industry transformed gradually to compete and gain the critical mass by infusing new investments and acquiring new technology through technology transfer not only to serve domestic market but to compete and capture International market even to feed the need of global OEMs apart from serving replacement market in After Sales Service requirement. In this research paper we are trying to find out the International competitive advantage through export competitiveness for a particular auto-component product viz., Gear Boxes but with shocking findings that for the particular product Indian auto-component industry does not have competitive advantage for exports because this product requires precision technology and significantly large capital investment for manufacturing this product. As this industry is very much fragmented and low in scale very few firms operate in this segment. Further, Many MNCs use knocked down imported assemblies of gearboxes. The fundamental problem for the growth of this industry is it is very much fragmented and only very few firms are having the capability of sufficient investment and does not have capacity and intention for R&D and als