NITI Aayog's Vision for India's Auto Industry

15 Apr 2025 CW Team

NITI Aayog has launched the report titled "Automotive Industry: Powering India’s Participation in Global Value Chains," offering a roadmap for the country’s automotive future. Released by Shri Suman Bery, Vice Chairman, the report outlines key strategies to grow India’s automotive sector to $145 bn in component production by 2030.

India is currently the fourth-largest automobile producer globally, but with only a modest three per cent share in the global automotive component market. The report emphasises the need to strengthen India’s position through competitive manufacturing, skill development, and strategic collaborations, focusing on infrastructure, R&D, and technology integration.

With a vision to increase India’s share of the Global Value Chain (GVC) from three per cent to 8 per cent by 2030, the report proposes fiscal interventions like R&D incentives, skill development programs, and operational expenditure support. Additionally, non-fiscal measures such as the promotion of Industry 4.0 and international collaborations are outlined to enhance global competitiveness.

The growth forecast includes tripling exports to $60 billion and creating 2-2.5 mn new jobs. Through focused efforts, India is set to emerge as a global automotive hub, powered by innovation, sustainability, and a thriving manufacturing ecosystem.

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