India's Automotive Component Production to Reach $ 145 billion by 2030: NITI Aayog
India's top policy think tank body NITI Aayog has envisions the country's automotive component production growing to $ 145 billion by 2030, with exports tripling from $ 20 billion to $ 60 billion.
NITI Aayog's vision for the automotive industry in India by 2030 is both ambitious and attainable. The report anticipates that the nation's automotive parts manufacturing will expand to $145 billion, with exports increasing threefold from $ 20 billion to 60 billion.
NITI Aayog has unveiled an illuminating report named "Automotive Industry: Powering India's Engagement in Global Value Chains."
This report provides a comprehensive examination of India's automotive industry, emphasizing both prospects and obstacles, while outlining a strategy for establishing India as a significant participant in global automotive markets.
The report from NITI Aayog details various strategic fiscal and non-fiscal measures designed to improve India's international competitiveness in the automotive industry.
The interventions are organized into four categories of automotive components, determined by their complexity and manufacturing maturity: Emerging & Complex, Conventional & Complex, Conventional & Simple, and Emerging & Simple.
The fiscal interventions have proposed support for Opex (Operational Expenditure), skill enhancement, research and development, IP transfer, and cluster development.
In terms of non-fiscal interventions, NITI Aayog recommends steps like adopting industry 4.0, fostering international cooperation, streamlining regulatory procedures, allowing flexible worker hours, and facilitating supplier discovery.
In 2023, the world's car manufacturing hit around 94 million units. The worldwide market for automotive components was assessed at $ 2 trillion, with exports accounting for about $ 700 billion.
India has become the fourth-largest producer in the world, following China, the USA, and Japan, with an annual output of almost 6 million vehicles.
Backed by programs such as 'Make in India' and its economically viable workforce, India is establishing itself as a center for automotive production and exports.
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India, while being the fourth-largest automobile manufacturer in the world, holds a small portion (about 3 percent) of the global automotive parts market, totaling around $20 billion.