Auto sector to contribute 12% to India's GDP in next decade: Geete
The Dollar Business Bureau
Heavy Industries and Public Enterprises Minister Anant Geete said on Thursday that the country’s automobile industry is expected to contribute 12% to the GDP (gross domestic product) over the next decade, from the current 7.1%.
“Indian automotive sector plays a very important role in the country's manufacturing sector and is likely to contribute 12% to the country's GDP over the next decade,” Geete said.
He said this while inaugurating a test track facility set up in Chennai by Global Automotive Research Centre (GARC) - a unit working under the National Automotive Testing & R&D Infra Project (NATRiP).
The Minister said that commissioning of this facility is likely to attract greater investments in the automotive industry and its components and also expressed confidence that such facilities will attract more key players from the industry to establish facilities in the state.
Recently, two-wheeler sector of India became the biggest market in the world, overtaking China.
Geete said that the government is considering adopting different and new methods for promoting cheap, safe, clean and futuristic mobility solutions that will help in generating jobs in manufacturing and research & development.
The government is also encouraging the usage of electric vehicles under the FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) India Scheme, as this would help in reducing the country’s dependency on oil imports, he said.
As per a NITI Aayog’s report, India can cut its demand for energy by 64% and for carbon emissions by 37% with the support of well-connected, shared and electric passenger mobility all over the country.
The GARC, situated in the southern automotive-cluster of India, is notified now under the Central Motor Vehicle Rules, 1989 for issuing certificates for homologation. These facilities are likely to be used by automotive OEMs (original equipment manufacturers) and component makers for research & development and homologation.