Gadkari, Kumaraswamy See Auto Sector Playing Vital Role In Fiscal 2025 Growth
Both the ministers were speaking at the 64th annual session of the Automotive Component Manufacturers Association.
Indian auto and auto component sectors will play a vital role in the growth of the Indian economy, according to two key union ministers of the country. While Union Heavy Industries Minister HD Kumaraswamy emphasised the significant role of the auto components industry in India's economy, Minister of Road Transport and Highways Nitin Gadkari's ambitious goal is to position India as the world's leading auto manufacturing hub.
Both were speaking at the 64th annual session of the Automotive Component Manufacturers Association. The sector contributes 2.3% to the nation’s gross domestic product and supports an estimated 1.5 million jobs.
The production-linked incentive scheme for cell manufacturing and storage seeks to achieve a substantial 50 GWh of capacity, reinforcing the government's push towards enhancing India's capabilities in the automotive and battery manufacturing sectors, Kumaraswamy said.
The Indian auto sector is currently valued at Rs 22 lakh crore, with the auto part industry alone contributing Rs 5.18 lakh crore, according to Minister of Road Transport and Highways of India Nitin Gadkari. Notably, the auto industry remains the highest contributor to GST revenue among all sectors, he said.
Gadkari sees the auto component industry growing at 8-10% in fiscal 2025.
Additionally, Gadkari advocated for increased consumer incentives, urging the industry to offer greater discounts on new vehicles in exchange for scrapped ones.
Addressing concerns about environmental impact, Gadkari noted that the transport sector is responsible for 40% of India's pollution. "I'm not against petrol and diesel. "Sometimes my statements are misrepresented in the media," he said as a clarification to his stance on fossil fuels.
Gadkari called for solutions that are cost-effective and pollution-free, while acknowledging the need for improved fuel economy.
Gadkari also spoke about the electrification of the auto industry, forecasting the achievement of price parity between electric and internal combustion engine vehicles in two years.
He encouraged the industry to expedite the adoption of EVs, stating that while the market is favourable, some companies are hesitant to transition from fossil fuels.
