India Charts GVC Roadmap to Boost Global Role in Auto Industry

17 Apr 2025 CW Team

NITI Aayog has released a detailed report titled “Automotive Industry: Powering India’s Participation in Global Value Chains”, outlining a strategic path to elevate India’s role in global automotive manufacturing. Launched on 11 April 2024, the report highlights that while India contributes 7.1 per cent to global GDP through its automotive sector and ranks fourth in vehicle production, it holds just three per cent share in global auto component trade.

The Vision 2030 roadmap targets: – Rs 12 trillion production output – Rs five trillion in exports – 2 to 2.5 Mn new jobs

The report calls for increased investment in EVs, smart manufacturing, and green mobility, backed by schemes like FAME, PM E-Drive, and the PLI scheme. These programmes have mobilised over Rs 660 billion in support of localisation and clean technologies. India aims to increase its global trade share in auto components to eight per cent by 2030 by addressing cost disadvantages, enhancing R&D capacity, and promoting digital integration. The report underscores that with focused execution, India can emerge as a high-value automotive hub, shifting from traditional low-cost production to global innovation leadership.

Source: PIB Delhi, NITI Aayog

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