India to lead global auto industry in five years: Gadkari

Currently, the US leads the global auto industry with a size of ₹78 lakh crore, followed by China at ₹47 lakh crore and India at ₹22 lakh crore.

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Union Minister for Road Transport and Highways Nitin Gadkari on Tuesday said the government aims to make India’s automobile industry the largest in the world within the next five years, PTI reports. Launching a report prepared by The Express Industry Council of India (EICI) and KPMG, Gadkari said the sector has grown rapidly in the past decade, expanding from ₹7.5 lakh crore in 2014 to ₹22 lakh crore at present. “My aim is to make India’s automobile industry number one in the world in the next five years,” he said. Currently, the US leads the global auto industry with a size of ₹78 lakh crore, followed by China at ₹47 lakh crore and India at ₹22 lakh crore.Logistics sector potential in India
The minister also highlighted the government’s success in reducing logistics costs. “Until recently, logistics cost in India was about 16 per cent of GDP. According to a joint IIM-IIT survey, we have brought this down to 10 per cent. Our aim is to bring it to single digits soon,” Gadkari said, crediting the achievement to massive investments in expressways and economic corridors. According to the report, titled Powering India’s Economy, Connecting Business and Markets, the express industry contributes $ 1–1.5 billion in GST and $ 650 million in customs revenue annually. It is projected to grow from $ 9 billion in FY25 to $ 18–22 billion by 2030, creating 6.5–7.5 million jobs. The study noted that the domestic express segment accounts for about 70 per cent of the market, valued at $ 6.3–6.5 billion, with surface express contributing the largest share. The international segment, with a 30 per cent share, handled 19.5 million shipments weighing 1,52,300 tonnes in FY24.

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