9 Months agoInnovation, R&D and a favourable policy regime put the Indian auto sector's growth in the fast lane.
The automotive industry in India has been on a growth trajectory with impressive spikes in sales, production, and exports over the last two years. With an average production of around 24 million vehicles annually and employer of over 29 million people (direct and indirect employment), the automotive sector in India is one of the largest in the world. India is the largest tractor manufacturer, 2nd largest two- wheeler manufacturer, 2nd largest bus manufacturer, 5th largest heavy truck manufacturer, 6th largest car manufacturer and 8th largest commercial vehicle manufacturer. For every vehicle produced, direct and indirect employment opportunities are created with employment of 13 persons for each truck, 6 persons for each car and 4 for each three- wheeler and one person for two-wheelers. The USD 93 billion automotive industry contributes 7.1% to India’s GDP and almost 49% to the nation’s manufacturing GDP (FY 2015-16).
As a major employment generator, GDP contributor and FDI earner, the automotive industry is instrumental in shaping the country’s economy and hence regarded as a 'Sunrise sector' under Make in India.
In order to further promote the sector, initiatives are being undertaken by the Department of Industrial Policy and Promotion Ministry of Commerce and Industry Government of India to promote innovation and R&D and create a favourable policy regime to make India a prominent manufacturing destination.
The Automobile Mission Plan 2016 – 2026 envisages creating India as one of the top three automobile manufacturing centres in the world with gross revenue of USD 300 billion by 2026.