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

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.