Union Minister Kumaraswamy highlights role of Indian automobile industry in country's economic growth
Sep 10, 2024
New Delhi [India], September 10 : Union Minister HD Kumaraswamy on Tuesday highlighted the significant role played by the Indian automobile industry in driving the nation's economic growth.
Addressing the 64th SIAM Annual Convention titled Sustainable Mobility Journey towards Viksit Bharat here today, Kumaraswamy said, "With a turnover of Rs 20 lakh crore, the sector contributes approximately 6.8 percent to the GDP and accounts for around 40 percent of India's manufacturing sector. Additionally, the automobile industry employs over 30 million people, reflecting its critical position in India's industrial landscape."
"Despite global supply chain disruptions and the challenges posed by the pandemic over the past 2-3 years, the automobile industry has shown remarkable resilience. All segments of the sector--including commercial and passenger vehicles, three-wheelers, two-wheelers, and auto components--have made a strong recovery in the last two years, establishing India as an emerging hub for automobile production," Kumaraswamy highlighted.
The Union Minister further reiterated India's commitment to sustainable growth, recalling Prime Minister Narendra Modi's 'Panchamrit' roadmap unveiled at the COP26 in Glasgow.
"The roadmap reaffirms India's determination to achieve net-zero carbon emissions by 2070, along with cutting carbon emissions by 1 billion tonnes by 2030. The Government of India, through various initiatives, has been actively promoting sustainable mobility in the country. The Ministry of Heavy Industries (MHI) has played a central role in supporting this transition with schemes such as the Production Linked Incentive (PLI) for Automobile and Auto Components, and the PLI for Advanced Cell Chemistry (ACC)," he said.
He also pointed out that to further support the Make in India initiative and strengthen the EV ecosystem, the Government has introduced a scheme to promote the manufacturing of electric passenger cars.
"Under this scheme, investing companies can avail of a concessional import duty of 15 percent, significantly lower than the existing rates of 70 percent or 100 percent, thereby fostering innovation and competition in the EV market," Kumaraswamy said.
The Minister also noted the remarkable growth in electric vehicle penetration in India, with a 90 percent increase in electric passenger vehicles and a 30 percent rise in electric two-wheelers in 2023-24.
