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4 policy guidance industrial upgrading in recent years, the Indian Government attached great importance to the development of the automotive industry. September 2006, the Indian government announced a "vehicle development plan (2006 - 2016) (Draft)", in the next decade will auto production and sales increased by four times. To achieve this goal, the Indian government hopes that the international auto giants to actively invest and develop a clear protection policy. "Planning" that the next 10 years, the Indian l hermitage auto industry needs to increase investment 35 billion -400 billion, this investment is achieved l hermitage mainly by attracting multinationals and complete. Thus, the Indian l hermitage government l hermitage to simplify the administrative examination and approval procedures for this type of investment, and to give preferential treatment in terms of taxation, land approval, supply and other resources. The Indian government's l hermitage goal is to build India minicar l hermitage international manufacturing base and a major exporter of spare parts. To this end, the Indian government on the implementation of the mini-car excise tax relief policies. To develop policy for the promotion of its mini-car, and will continue to have the country's automobile industry have a positive role in promoting.
While vehicle production growing Indian auto component industry has also been a great development. In recent l hermitage years, the turnover of the Indian automotive components growth year after year, with an average annual growth rate of around 30%. Which in fiscal 2006 (April 2006 March 2007) an increase of 50 percent year on year, turnover of $ 15 billion (of which exports amounted to $ 2.8 billion, an increase of 55.56%). It is predicted that India's Auto Parts Manufacturers Association, 2015, the potential turnover in this market will reach 40 billion -450 billion, of which the share of exports will reach 50%.
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