According to Maruti Suzuki India MD and CEO Hisashi Takeuchi, India's manufacturing sector has an extremely bright future ahead, with the nation poised to become a dominant global economic force in the upcoming decades. He stressed that maintaining consistent policy frameworks will be essential for India to successfully transform into a genuine worldwide manufacturing center.

During his address at the Automotive Component Manufacturers Association of India (Acma) convention, Takeuchi pointed out that India possesses an unusual opportunity to position itself as a trustworthy, robust, and sustainable manufacturing hub, even amid global political and economic instability.

Looking back at worldwide economic patterns, he remarked that various nations have led at different periods — beginning with the US, Europe, and Japan in the early 1900s, followed by the 'Asian Tigers' (Singapore, South Korea, Hong Kong, and Taiwan). China has maintained this leadership role for the last three decades, but Takeuchi now sees India as the next country to assume this position.

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Takeuchi identified multiple factors working in India's favor: a substantial population of working age, an economy currently valued at approximately USD 4 trillion, robust governmental assistance through policy changes and financial incentives, and a cultural identity characterized by innovation and adaptability. He drew comparisons to Japan after World War II, emphasizing how government support played a crucial role in that nation's industrial transformation.

The government's commitment to fostering industrial expansion is evident through various policy initiatives, such as corporate tax reductions, the Production-Linked Incentive program, the Make in India campaign, decreases in direct and indirect taxation, and accelerated interest rate reductions aimed at stimulating domestic consumption, he noted.

However, he emphasized that maintaining consistency and predictability in policy development is equally crucial as implementing reforms.

 

Takeuchi also highlighted worldwide disruptions, such as the COVID-19 outbreak, commercial conflicts, and supply chain interruptions like the Suez Canal obstruction, which revealed weaknesses in previously reliable systems. He contended that these same disruptions present India with a chance to become a favored collaborator in international manufacturing.

Regarding trade difficulties, Takeuchi expressed worry about American tariffs imposed on Indian automotive component shipments. Approximately 30 percent of these shipments are destined for the US, with roughly half currently subject to a 25 percent tariff and the remainder facing a 50 percent tariff. While this presents a significant obstacle for the sector, he remained optimistic that governmental initiatives would provide some relief.

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Looking at the bigger picture, India's automotive industry is particularly noteworthy as it currently ranks as the third-largest car market globally. Automobile component exports surpassed USD 523 billion in the fiscal year 2025, and according to Takeuchi, this figure could potentially increase by more than 100 percent before 2030. He further noted that international companies are acknowledging this opportunity, pointing to Suzuki Motor Corporation's choice to establish India as the manufacturing hub for its inaugural globally distributed electric car, the e-VITARA, which will be delivered to over 100 nations.

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According to Takeuchi, India possesses the chance to not only take part in international automotive supply networks but to spearhead them, assuming it capitalizes on its internal market demand, workforce capabilities, and governmental backing. In his final remarks, he voiced optimism that India has the potential to emerge as a reliable ally in the worldwide automotive supply network, supporting the goal of achieving a prosperous 'Viksit Bharat'.