Auto Industry’s turnover equates to 27% of India’s Industrial GDP

Auto Industry’s turnover equates to 27% of India’s Industrial GDP

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Indian auto industryIt was also announced Indian automobile industry’s turnover in itself as equivalent to 7.1% of the Indian GDP of about $ 2315 bn. Indian automobile industry’s turnover in itself is equivalent to a robust 7.1% of the Indian GDP of approximately US $ Bn 2315 announced

Determined by Ministry of Heavy Industries and Public Enterprises, Government of India in collaboration with the Indian Automotive Industry and released by former Prime Minister of India, Dr. Manmohan Singh, Automotive Mission Plan 2006-2016 was made as an Indian Automotive Industry growth blueprint. The review report was unveiled by R. S. Katoch, Secretary, Ministry of Heavy Industries and Public Enterprises, Government of India, Rajeev Kher, Commerce Secretary, Ministry of Commerce & Industry, Saurabh Chandra, Secretary, Ministry of Petroleum and Natural gas, Government of India, Ambuj Sharma, Additional Secretary, Ministry of Heavy Industry and Public Enterprises, Government of India, R. Raghuttama Rao, Managing Director, ICRA Management Consulting Services, Vinod K Dasari, Vice President, SIAM & Managing Director, Ashok Leyland, Dr. Pawan Goenka, and Vishnu Mathur, Director General, SIAM.

Upon unveiling the mid-term Review Report, Dr. Pawan Goenka said the Indian auto industry has made significant progress despite hiccups in 2008-09, 2012-13. Many vehicle price increases have been contained within about 11% despite inflation of 77% in the last decade.

Indian Automobile Industry accounts for 4.3% of total exports, next to textile and handicraft industry in India. Total investment has been in excess of US$ 35 bn in the last decade. US$ 24 bn has been contributed by automobile companies and US$ 11 bn by automotive component companies. The industry represents about 8% of India’s R&D expenditure. Revenue turnover is equivalent to 27% of India’s industrial GDP, contributing to about 13% of excise revenues.

Under Annual Mission Plan 2016, some interventions are yet to be implemented. Emergence of new issues warrants immediate attention of both government and industry. The last decade was dominated by domestic demand. The road forward caters to both domestic and global demand. Government of India has begun work on AMP 2016-26 to address unfinished agenda of AMP 2016