Summary:

India’s automotive sector contributes 7.1% to the national GDP and 49% to manufacturing GDP, with nearly 28 million vehicles produced in FY23. Despite strong linkages to steel, electronics, and information technology, it accounts for only 3% of global auto component trade. NITI Aayog’s Vision 2030 aims to boost output, increase exports, and generate employment. With strategic reforms and investment, India targets expanding its global share to 8% by 2030.

Major government initiatives such as Make in India, Atmanirbhar Bharat, the Production Linked Incentive (PLI) Scheme, FAME, and the PM E-Drive Scheme have mobilised over ₹66,000 crore to promote electric vehicles, localisation, and component manufacturing. However, India faces a 10% cost disadvantage compared to China due to high logistics and input costs. Targeted interventions like R&D incentives, intellectual property transfer, and Industry 4.0 adoption could position India as a global hub for high-precision automotive components.

Source: IBEF

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