Indian Auto Industry Likely To Contribute 12% To GDP In Next Decade

At the inauguration of a test track facility developed by Global Automotive Research Centre, Union Minister Anant Geete said the Indian automobile industry is likely to contribute 12 per cent to the nation's GDP over the next decade.

By Carandbike Team

1 mins read

Published on May 20, 2017

Highlights

The automobile industry currently contributes 7.1 per cent to India's GDP
It plays a very important role in the country's manufacturing sector
The Indian two-wheeler industry is now the largest market in the world

Union Minister Anant Geete, at the inauguration of a test track facility developed by Global Automotive Research Centre, said the Indian automobile industry is likely to contribute 12 per cent to the nation's GDP over the next decade. Currently, the industry contributes 7.1 per cent to India's GDP. The minister further added that the commissioning of the new facility is expected to bring in greater investment in automotive and automotive components. He also believes that these facilities will attract many more major players from the automotive industry to set up facilities in Tamil Nadu. In case you were wondering, the Global Automotive Research Centre (GARC) Chennai is an organization under the purview of the National Automotive Testing & R&D Infra Project (NATRiP). The GARC is now notified under the Central Motor Vehicle Rules, 1989 to issue test certificates for homologation. The facilities are expected to be used by automotive equipment and component manufacturers for homologation and R&D. Geete said, "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." He stated the government is also working on the adoption of modern measures to encourage clean, safe, cheap and futuristic mobility services, which will also lead to job creation in the research, development and manufacturing sector. Other than that, the Indian government is championing the use of electric vehicles by the means of the FAME India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) scheme. Geete said the scheme would also help the government decreased dependency on oil imports. According to a recent 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 report also said that the adoption of more electric and shared vehicles could lead to savings of nearly Rs. 3.85 lakh crore ($60 billion) in energy costs by 2030.

# Indian Auto industry # Anant Geete # Global Automotive Research Centre Chennai # GARC # Auto Industry

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