Currently India does export Maruti Swift to europe & south east asia, ditto with hyundai grandi10 (its simply called i10 outside). But those exported versions meets all the safety standards right from meeting crash tests standard to compulsory airbag. But the very same car sold to Indian masses neither has air bag (othr than top trim level ) or neither does it pass crash tests .
Of course the cost will rise a bit say by another 30k-40k for air bags and structural modifications. But look at the fact that cars always lose value by 30 % out of show room or we pay more than 12% at starting level to 20 % of car price as taxes. As such a minor increase would over a period of time even out the costs in long run.
The problem lies with attitude of industry which has became a cabal of sorts, where every one prices the car at same level and provides nearly the same features. Consider this , all over the world automatic transmission is standard transmission but India still runs on manual , why? bcos manufacturers end up providing it at only top trim level creating a new price segment within a segment by increasing it by another 60k.
This is happening bcos car imports in India attract 200% duty,so the smart alecs who already have invested in India now oppose import of cars. If import of cars is allowed then they will have to match them feature for feature.
Indian govt is introducing safety standards for cars manufactured from 2018 (
https://en.wikipedia.org/wiki/Bharat_New_Vehicle_Safety_Assessment_Program).
