India is set to emerge as the world’s next manufacturing powerhouse, and policy stability will be crucial to realise this potential, Maruti Suzuki India MD and CEO Hisashi Takeuchi said on Friday. Speaking at the annual convention of the Automotive Component Manufacturers Association of India (ACMA), Takeuchi highlighted the country’s unique strengths and opportunities amid a turbulent global economic landscape.“When we look back at history, every few decades a new nation rises as an economic powerhouse. The last three decades have belonged to China, and now, the next many decades belong to India,” Takeuchi said, citing examples of the US, Europe, Japan, and the Asian Tigers that have had their periods of economic dominance, reported PTI.Takeuchi pointed to India’s advantages, including the world’s largest working-age population, a rapidly growing $4 trillion economy, proactive government support, and the “spirit of resilience and a deep sense of innovation” of Indians. He drew parallels with post-World War II Japan, where government-backed industrial initiatives propelled economic growth, noting that India’s reforms—reduced corporate taxes, bold schemes like PLI, and Make in India—demonstrate similar strategic intent.He emphasised that recent steps, such as cuts in direct and indirect taxes and accelerated interest rate reductions to stimulate domestic demand, will further bolster the manufacturing sector. “As India aspires to be a global manufacturing hub, it will be important to continue demonstrating policy stability and predictability,” Takeuchi said.Citing global disruptions like the COVID-19 pandemic, trade tensions, and supply chain crises such as the Suez Canal blockage, Takeuchi said these challenges present India with a rare opportunity to position itself as a trusted, resilient, and sustainable manufacturing hub.He acknowledged challenges in the auto sector, particularly US tariffs impacting nearly half of India’s $523 billion auto component exports in 2024-25. “The government is very sensitive to this issue, and hopefully, some solution will be found,” he said, noting positive dialogue between the two countries.Takeuchi highlighted the promising trajectory of India’s automotive market, already the third-largest globally, and the potential for auto component exports to more than double by 2030. He cited Suzuki Motor Corporation’s decision to make India the production hub for its first global electric vehicle, the e-VITARA, which will be exported to over 100 countries, as evidence of India’s growing stature in the global supply chain.Concluding on a strategic note, Takeuchi said, “If we combine strategic intent with India’s unique advantages of domestic demand, talent, and policy support, the possibilities for our growth are limitless. India will be the world’s trusted partner in the automotive supply chain, and together we will drive towards the vision of a Viksit Bharat.”
