New Delhi, Feb 20:India is expected to move ahead of the United Kingdom and Canada as a car-producing country as its car production capacity is expected to surpass two million units by 2008 from the present 1.4 million units.
The country has already surpassed Korea to become the third largest car market in Asia-Pacific after China and Japan.
The auto component industry is likely to almost double to 18.7 billion dollars by 2009 and reach about 40 billion dollars by 2014.
''Since only eight out of every 1,000 people in India own a car, compared with 16 in China and 500 in developed markets, it is clear there is a lot of room for growth,'' said Mr Bundeep Singh Rangar, Chairman of IndusView the India-focused cross-border advisory firm.
General Motors has already made a clear commitment to India. By 2010, the world's largest automaker will ship parts worth one billion dollars from India to its global production units. Other manufacturers, such as, South Korea's Hyundai Motor Co, Italy's largest maker Fiat SpA as well as Japan's top car producers Honda Motor and Nissan Motor, have announced investment plans for India.
The cross-border mergers and acquisitions analyst predicts that India's pharmaceutical and IT services sectors will also reach critical mass this year, propelling globalisation strategies.
The pharmaceutical industry is expected to grow by more than 13 per cent to 6.5 billion dollars in 2007 and reach a market size of 9.5 billion dollars by 2010, surpassing the growth trends of 9.5 per cent recorded over the last five years.
''The progressive trend in this sector is expected to continue, due to increased integration with global trade which began with the signing of the General Agreement on Tariffs and Trade (GATT) in January 2005. India started to recognise global patents and the growing significance of the country in terms of contract research and clinical trials,'' Mr Rangar said.
The ability to produce high quality, low cost drugs will see India's exports spike over the coming months.
IndusView is also forecasted continued growth in the IT services sector. Software and related services exports are expected to touch 21 billion dollars in 2007, a growth of 21.6 per cent. Business process outsourcing is also expected to increase by 34 per cent to reach at 12.6 billion dollars in 2007.
''European pharmaceutical, automotive and IT services companies will be prime targets for takeovers in the next year. Indian companies in these sectors have reached critical mass and are set for lift off,'' according to Mr Rangar.
''We'll no doubt see a global spotlight on these industries as Indian companies make headline-grabbing overseas acquisitions to buy customer relationships and intellectual property.''