The Indian government announced on Monday that the country's automotive industry is on track to become the world's third-largest by 2030, propelled by initiatives like the Rs 25,938 crore Production Linked Incentive (PLI) for Automobile and Auto Components, aimed at bolstering the sector's expansion.
Scheduled for Tuesday, the Ministry of Heavy Industries (MHI) is convening a conference to evaluate the progress of the Production Linked Incentive - Auto Scheme. Heavy Industries Minister Mahendra Nath Pandey will preside over the meeting involving various stakeholders.
During the event, there will be a special emphasis on comprehending the potential presented by this initiative. The MHI regards the PLI-Auto applicants within the automotive industry as pivotal contributors to the scheme's success.
Anticipated participants at the meeting encompass PLI-Auto applicants and test agencies, among others, who will contribute their insights, experiences, and address any concerns or hurdles.
"The positive repercussions of these initiatives are projected to culminate in the advancement of the automotive industry, positioning the Indian automotive sector as the world's third-largest by 2030. The involvement of PLI-Auto applicants is of paramount importance," affirmed an official statement from the ministry.
The statement underscored that the ambitious goals of extensive localization and the development of Advanced Automotive Technology (AAT) products within India necessitate robust support and growth of the automotive sector.
The automotive industry stands as a cornerstone of India's economy, boasting substantial interconnections both backward and forward in the supply chain, and significantly driving economic growth. Its contribution to the nation's Gross Domestic Product (GDP) has surged from 2.77 percent in 1992-93 to approximately 7.1 percent. Moreover, the industry provides direct and indirect employment to over 19 million individuals.
Within the Indian automobile market, two-wheelers held a predominant market share of 77 percent, while passenger cars accounted for 18 percent during the 2021-22 period. Notably, the passenger car segment is dominated by compact and mid-sized vehicles.
India's aspiration is to double the size of its automotive industry to Rs 15 lakh crore by the close of 2024. Noteworthy is the foreign direct investment (FDI) inflow of USD 33.77 billion into the industry spanning from April 2000 to September 2022, constituting approximately 5.48 percent of the overall FDI inflow into India during that timeframe.
Oil Market Faces Steep Decline Amid Escalating Recession Concerns
Luxury Car Extravaganza: Gearing Up for the Grand G20 Summit