With the right enabling conditions for the automotive sector, India can triple exports to $60 billion, generate a $25 billion trade surplus, and create over 2-2.5 million direct jobs by 2030, propelling it toward becoming a globally competitive, innovation-driven manufacturing hub, the government said on Tuesday.
- Updated On Apr 15, 2025 at 03:58 PM IST
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With the right enabling conditions for the automotive sector, India can triple exports to $60 billion, generate a $25 billion trade surplus, and create over 2-2.5 million direct jobs by 2030, propelling it toward becoming a globally competitive, innovation-driven manufacturing hub, the government said on Tuesday.India’s automotive industry is a cornerstone of the nation’s manufacturing and economic growth, contributing 7.1 per cent to the country’s Gross Domestic Product (GDP) and 49 per cent to manufacturing GDP.As the fourth-largest automobile producer globally, India possesses the scale and strategic depth to emerge as a global leader in the automotive value chain, according to a NITI Aayog report.India has seen exponential growth in vehicle production, with over 28 million units manufactured in 2023-24 alone. India’s current share in globally traded auto components is approximately 3 per cent or 20 billion.
EVs are reshaping manufacturing priorities, with China producing over 8 million EVs in 2023. The EU and the US are accelerating EV adoption through regulatory mandates and subsidies. EVs are increasing the demand for batteries, semiconductors, and advanced materials.
According to the report, integration of AI, robotics, digital twins, Internet of Things (IoT), and 3D printing is driving efficiency.
Many global automakers are investing heavily in creating smart factories, where AI, IoT, and robotics are integrated into every aspect of the production process. Countries like Germany and South Korea are leading in smart factory adoption, said the report.
Despite a strong manufacturing base, India holds only 3 per cent share in global traded auto components, highlighting a vast scope for expansion.
“The Vision 2030 roadmap aims to scale production to $145 billion, exports to $60 billion, and generate 2-2.5 million jobs. Government schemes like FAME, PM E-Drive, and PLI have mobilised more than Rs 66,000+ crore to support EVs and localisation. With targeted reforms and GVC integration, India can raise its global component trade share from 3 per cent to 8 per cent by 2030,” said the report.
With the right mix of ambition and action, India can become a globally recognised supplier of next-generation mobility solutions.
- Published On Apr 15, 2025 at 03:53 PM IST