The Economic Survey on Thursday projected that India would become a major exporter of automobiles in the next two years saying the sector was a striking success story of a traditional industry which had grown out of its roots.

The pre-Budget Survey said the automobile industry comprising commercial vehicles, passenger cars and multi-utility-vehicles, two and three wheelers, tractors and ancillary industry had performed extremely well in 2001-02 and in the current fiscal.

"This sector is a striking success story of a traditional Indian industry which has grown out of its roots in a protectionist regime into competing and succeeding in a globalised environment. The success of this sector contradicts simple stereotypes about the non-competitiveness of Indian manufacturing," the survey said.

It attributed the impressive performance of the sector to low interest rates, growth in consumer finance and strong export demand during the year.

Stating that exports of automobiles surged by 68.1 per cent to 2,15,318 units during April-December 2002, the Survey said, "if present growth rates continue, within two years, India will be a significant exporter of automobiles on the world stage."

Exports of two and three-wheelers soared by 71.8 and 215.4 per cent to 1,24,818 and 32,024 units respectively during the period under review.

PTI