India’s Automotive Ambitions: Gadkari Explains How India Can Become a Global Leader

Speaking at the Deloitte Government Summit on Thursday, minister for Road Transport and Highways Nitin Gadkari said that India is gearing up to put its automobile sector on the global map. Currently the third largest market for automobiles after the United States and China, India’s automotive industry has grown rapidly over the decade and has boosted its market size to ₹22 lakh crore in FY 2024 increased from ₹7.5 lakh crore previously.

The minister used this occasion to assure the audience that the government would continue working toward this growth path, pointing to India as home to virtually all global automotive players. The Minister was also looking forward and beyond domestic growth as he pointed to examples of the new focus on electric billets made in India including recent inquiries from the Australian government.

Foreign Sales Driven Economic Growth and Stability

Our rights in the Indian auto industry are based on some key principles: an emphasis on export growth coupled with import reduction. To this, Gadkari emphasized that this approach is desirable for improving the macroeconomic stability of the nation and creating an identity of India in the global automotive industry.

Logistics: A Solution to the Challenge

A major challenge India faces in achieving manufacturing dominance, according to Gadkari, is the logistics cost in the country. At present, these costs amount to 14 to 16 percent of the total GDP in India, and that is more than China, which is 8%, or Europe, which is 12%. Minister underlined that such costs have to be lowered to make Indian products more competitive with similar offerings from other countries.

“As logistics costs start reducing our prices will be even more competitive in the international market,” Gadkari said adding that there is a direct link between access to efficient logistics and the extent of the Indian automotive industry’s ability to penetrate the global market.

Also Read:- August Exports Plummet Amid Red Sea Crisis and Logistical Hurdles

A Decade of Transformation

The strong and continuing development of the automobile market in India over the past decade serves as the groundwork for the government’s ambitious strategies. Market size has climbed from ₹7.5 lakh crore to ₹22 lakh crore which supports the fact of sound health of the sector and the possibility of future growth.

These plans have enabled India to plan the use of the growing manufacturing capacity in the automobile industry, huge market, and peculiar geopolitical advantage to turn the automotive industry into a powerhouse in the world that can change the auto world within the coming year.

Source By:- https://www.thehindubusinessline.com/