📊Executive Summary

The Economic Survey 2022 highlights a significant backlog of over 700,000 car orders in India due to a global semiconductor shortage, which has led to an average lead time of around 14 weeks in the automotive industry. Major car manufacturers like Maruti Suzuki, Hyundai, Tata Motors, and Mahindra are experiencing production constraints, with Maruti Suzuki alone reporting 240,000 pending orders. The semiconductor supply chain disruptions are affecting over 169 industries, indicating a widespread impact. The report suggests that recovery from these disruptions will be slow and costly, with a production cycle of 18-20 weeks for semiconductors. Procurement teams should closely monitor the situation as the supply chain improves gradually, but full capacity may not be reached soon....