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This increasing pull of Indian market
on one hand and the near stagnant rate of growth in auto sector in markets of USA, EU
and Japan have worked as a push factor for shifting of new capacities and capital in
the auto industry to India. The increasing competition in auto companies has not only
resulted in a spurt in choices of Indian consumers at competitive costs, it has also
ensured an improvement in productivity by almost 20 percent a year in auto industry,
taking it to one of the highest in Indian manufacturing sector.
3. To maintain this high rate of growth and to retain the attractiveness of Indian
market and for further enhancing the competitiveness of Indian companies the
Government through the Development Council on Automobile and Allied Industries
constituted a Task Force to draw a ten year Mission Plan for the Indian Automotive
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