New Delhi. According to industry experts, India's domestic automobile industry can grow from Rs 20 lakh crore in FY24 to $1.6 trillion (Rs 134 lakh crore) by 2047. The reason for the rapid growth of the auto industry is said to be the increase in the trend of electric vehicles (EVs).
Pawan Goenka, Chairman, IN-SPACe in the Department of Space, said the automotive industry in the country is poised for rapid growth and will contribute significantly in achieving the GDP target of Rs 32 trillion by 2047.
Speaking at an Automotive Component Manufacturers Association (ACMA) event in New Delhi, Goenka said the automotive industry's contribution to the country's economy could reach $1.6 trillion by 2047.
In the coming times, the share of the auto industry in GDP will be more than the current 6.8 percent, because for the last two decades the auto industry has been growing continuously at a CAGR of about 17 percent.
The auto sector plays a major role in direct and indirect employment in the country.
Society of Indian Automobile Manufacturers (SIAM) President Vinod Aggarwal said that to reduce dependence on imports, 50 such critical components have been identified by the Indian auto industry, which will be produced in India.
Aggarwal further said that India's automotive industry has crossed the Rs 20 lakh crore mark in FY24 and 14 to 15 per cent of the country's total GST is coming from the auto industry.
India has become the world's third largest passenger and commercial vehicle market. At the same time, India is the world's largest auto market in the two-wheeler and three-wheeler category.
At this event, Union Road Transport and Highways Minister Nitin Gadkari had said that the use of EVs will increase rapidly in the country in the coming times. In the next two years, the price of electric vehicles will reach the same level as petrol and diesel vehicles.
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Image Credit: Khas-Khabar.