Auto Sector Achieves Rs 20 Lakh Crore Benchmark, Accounts for 14-15% of India's GST: SIAM President
The Indian automobile industry crossed the critical milestone by breaching the Rs 20 lakh crore mark in FY24.
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Introduction
The Indian automobile industry crossed the critical milestone by breaching the Rs 20 lakh crore mark in FY24. This oversubscription underlines and explains the growing contribution of this industry towards the Indian economy, with the industry now accounting for about 14-15 percent of the total GST collected within the country.
These developments were announced by SIAM President Vinod Aggarwal at the 64th annual session of the Automotive Component Manufacturers Association, or ACMA. Aggarwal also highlighted the fact that while this milestone has been achieved by the industry, yet it is making significant contributions in direct and indirect employment to the country as a whole.
Aggarwal pointed out that the Indian automotive sector contributes about 6.8 percent to the country's Gross Domestic Product at present and that this will go up further with the industry growing further. Apart from that, he also highlighted the fact that a lot of technological changes are taking place in the industry and this was one factor that contributed to the improved global position of the industry.
Now, India has become the third-largest passenger vehicle market, the largest two- and three-wheeler market, and the third-largest commercial vehicle market in the world. These feats have been achieved in the pursuit of the dream of becoming a developed nation by 2047.
This was also entailed in reducing the import dependence for which the industry identified 50 critical components for domestic manufacture. Aggarwal said SIAM along with ACMA has set ambitious targets to increase local manufacturing. It is targeting to bring down the import content by 60 percent to 20 percent by 2025, thereby reducing imports by Rs 20,000 to Rs 25,000 crore over five years. The first phase of this import reduction target has already seen a 5.8 percent fall in the first two years.
Aggarwal went on to underline the need to develop high-tech components nationally. Since most of these are electrical or electronic, there is an effort to acquire the capability as well as the capacity to build them in-country. The industry is moving on several variants in powertrains: CNG, electric vehicles, hybrid systems-and is even looking at hydrogen and fuel cell technology for future applications.
He said looking ahead, the industry has to keep up its efforts to produce cleaner and safer vehicles with rising national aspirations. Starting from 2024 to 2047, the Ministry of Heavy Industries will work on formulating a new Automotive Mission Plan. There are three phases wherein this plan shall guide the growth of the industry: up to 2030, from 2030 to 2037, and from 2037 to 2047. The plan will be an important document for planning investments and formulating policies in line with the development of this sector.
ACMA President Shradha Suri Marwah spoke on the occasion and sounded very optimistic about the new Automotive Mission Plan. According to her, priority needs to be given to the skill gaps and quality standards at international levels. Partnerships with educational institutions and investment in skill development are the need of the hour. Moreover, as the demand for electronic components and semiconductor chips is upward, strategic alliances are the only way of catering to such demands.
On the whole, the automotive industry in India faced rapid growth and will play an immense role in technological modifications and economic advancement within the country.
About the Author
Mahek Sancheti
Content WriterMahek Sancheti, BAJMC graduate with a deep passion for writing. As a content writer, video content creator, creative content creator, and scriptwriter, I bring stories to life through words and visuals. I honed my skills by working with a prominent news agency, where I excelled in crafting compelling narratives and engaging content. Coming from a journalism and mass communication background I have skills to craft engaging narratives that captivate audiences. With a keen interest in writing and creativity, I aim to deliver impactful and meaningful content that resonates with diverse audiences.
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