Auto Industry set to contribute 12% to Country’s GDP by 2026
The Seminar on “Making of Auto and Auto Components” was organised as part of the Make in India week being held in Mumbai. While addressing the Inaugural session, Mr Anant G Geete, Hon’ble Minister of State of Heavy Industries & Public Enterprises said that the Auto and Auto Components industry plays a most crucial role in the Make in India initiative. The mega event is being organized by the Confederation of Indian Industry (CII) in partnership with Department of Industrial Policy and Promotion (DIPP) and the Government of Maharashtra.
Mr Geete lauded the Industry for their efforts and contribution towards the Auto and Auto components sector. He assured that Government will support and hand hold Auto and Auto Components Industry in developing India into a globally competitive manufacturing nation, delivering quality products, made in India for the World. “To make the ‘Make in India’ initiative a true success, the auto industry also needs to channelize its energies and efforts on R&D and new product development” he further added.
Mr Geete stressed that the latest and newer technologies need to be adopted and R & D in Auto sector needs to be strengthened. He also mentioned that presently India is the most secure destination for investments.
Indian Automotive industry is one of the largest in the world. Most major OEMs are present and manufacture in India; the Indian Auto Component industry has become an attractive supplier base for global markets. India has also emerged as a leading global hub for small cars with around 31% of the global small cars sold, being manufactured in India.
The sector’s impact on the Indian economy currently is significant as it contributes ~7% to the country’s GDP and is expected to increase to 12% as per the Automotive Mission Plan. Auto and Auto components sectors together are the highest contributors to industrial and manufacturing GDP, ~25% and ~ 45+% respectively.
According to the Automotive Mission Plan 2016-26 (AMP 2026); a collective vision of the Government of India and the Indian Automotive Industry, the Indian Auto Industry will be in the global top three for engineering, manufacturing and export of vehicles, auto components; it will encompass safe, efficient and environment friendly conditions for affordable mobility by 2026. The industry is likely to grow from USD 80 Billion to USD 270 Billion by 2026 and generate an additional 65 Million jobs.
Dr Rajan Katoch, Secretary, Department of Heavy Industry said there is need for all stakeholders including Government and Industry to work together towards foreign trades, tariff, investments and long term tariffs regime.
Mr Arvind Balaji, President, ACMA and Joint MD, Lucas TVS Ltd. said that India plays a very important role in the global auto component industry. There is need to create R&D fund to facilitate Startups, he added.
Mr Ravindra Pisharody, Vice President, SIAM and Executive Director, Tata Motors said that there are 30 R & D centres in the field of Automotive Sector. India is a strategic R & D destination as far as Automotive industry concern.
There is an urgent need to create an ecosystem that allows for innovation and R&D to proliferate. The industry has recommended to the Government to create a dedicated fund to boost R&D in the component sector.
17th February 2016