'Auto Sector May Contribute 12% to India's GDP in Next Decade'

Posted By: Religare
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    India's automobile industry is likely to contribute 12 per cent to the country's GDP over the coming decade, from 7.1 per cent at present, Union Minister Anant Geete said according to the PTI report.

    'Auto Sector May Contribute 12% to India's GDP in Next Decade'

    The minister was here to inaugurate a test track facility developed by Global Automotive Research Centre.

    The commissioning of the facility is expected to invite greater investment in automotive and automotive components, Geete said.

    The heavy industry minister expressed confidence that these facilities will attract many more major players from the automotive industry to set up facilities in Tamil Nadu.

    The Global Automotive Research Centre (GARC) Chennai is a body working under the NATRiP (National Automotive Testing & R&D Infra Project).

    "Indian automotive sector plays a very important role in the country's manufacturing sector and is likely to contribute 12 per cent to the country's GDP over the next decade," Geete said.

    India's two-wheeler industry recently became the largest market in the world, replacing China.

    He said the government is also looking forward to adopting new and different ways to promote clean, safe, cheap and futuristic mobility services, which will help in creation of jobs in research, development and manufacturing sector.

    The government is promoting the use of electric vehicles under FAME India Scheme, as it would help the government to reduce the dependency on oil imports, Geete said.

    According to a report of NITI Aayog, India can reduce energy demand by 64 per cent and carbon emissions by 37 per cent with the help of connected, shared and electric passenger mobility across the country.

    The GARC located in the southern auto-cluster of the country is now notified under the Central Motor Vehicle Rules, 1989 to issue test certificates for homologation. The facilities are expected to be used by the automotive original equipment manufacturers and component manufacturers for homologation and research & development.

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