India has stated its intent to invest in reaction to what it calls 'the internationalisation of the auto industry'.

Its government has said in a statement it will invest in testing centres to facilitate the process of manufacturing and product development.

Minister of commerce and industry Shri Kamal Nath said: "While cars are doing well, and account for three-fourths of the total exports, the other sectors require to be looked at more closely if India is to become an automotive hub - something which we are determined to achieve."

The growth pattern has not been uniform over all segments and India's top three destinations are Sri Lanka, Bangladesh and Nepal. It now aims to focus on Europe, the Middle East and Africa and predicts components would find a good market in the USA as well.

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