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Indian automobile industry is flourishing its twigs worldwide and is close to a fruition of triumph in the global competition.  The spine of the industry is its suppliers of auto components and accessories which is also an exclusive industrial segment.   Today auto industry is enjoying the benefits while the auto component sector is in its gloom despite of hard efforts of survival.  The factor making the differences is unavailability of resources like skilled labour and technology, high cost of production due to inflation and government policies of indirect taxes such as customs and excise.  The paper highlights the challenges faced by an Indian auto component industry in domestic and global market.


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