TL;DR
India's auto component industry is forecast to grow at 10% CAGR through FY30, driven by diversification into high-margin precision engineering sectors.
India's auto component industry is projected to achieve a compound annual growth rate (CAGR) of approximately 10 percent through fiscal year 2030. A recent report from Goldman Sachs indicates that manufacturers are diversifying their portfolios into higher-margin precision engineering sectors, including semiconductor equipment, defense, aerospace, and data-center power generation. This strategic shift is expected to propel the sector's revenue to $124.4 billion by FY30, up from an estimated $85.6 billion in FY26.
The report highlights that earnings before interest, taxes, depreciation, and amortisation (EBITDA) are anticipated to expand even faster, at a 15 percent CAGR over the same period. Global efforts to de-risk supply chains are increasingly attracting semiconductor, automotive, and industrial buyers to India, creating new opportunities for Indian precision-machining companies across various advanced manufacturing domains.
