August 29, 2023
The sector's contribution to the national Gross Domestic Product reached around 7.1%
Within India's automotive market, two-wheelers and passenger cars claimed market shares of 77% and 18%, respectively, during 2021-22
A substantial influx of Foreign Direct Investment (FDI) amounting to US$ 33.77 billion flowed into the industry between April 2000 and September 2022
India's objective is to double the dimensions of its auto industry to reach INR 15 trillion by the close of 2024
The Indian automotive sector is poised to rank number three globally by 2030, led by initiatives such as the INR 25,938 crore PLI for Automobile and Auto Components, according to a government report. The Ministry of Heavy Industries (MHI) has scheduled a conference to assess the progress of the Production Linked Incentive – Auto Scheme. The event will particularly spotlight the opportunities stemming from this initiative.
The automotive industry is one of the key drivers of economic growth in India with robust backwards and forward connections. The sector’s contribution to the national GDP escalated to around 7.1% from 2.77% in 1992-93. Moreover, it generates direct and indirect employment for over 19 million individuals.
Within India’s automotive market, two-wheelers and passenger cars claimed market shares of 77% and 18%, respectively, during 2021-22. Notably, the passenger car segment is predominantly led by compact and mid-sized cars.
India’s objective is to double the auto industry size to reach INR 15 trillion by the close of 2024. Also, Foreign Direct Investment (FDI) amounting to US$ 33.77 billion has flowed into the industry between April 2000 and September 2022, contributing around 5.48% of the total FDI inflow into India during this period.
Source: Economic Times