India aims to double the value of its auto industry by 2024, and with increasing foreign investments, it’s moving fast to become a top global player.
India’s booming automotive sector will secure third in global rankings by 2030. Significant government initiatives, such as the INR 25,938 crore Production Linked Incentive (PLI) for automobile and auto components, have propelled this robust projection. This incentive aims to enhance the manufacturing capabilities of the auto sector, driving both domestic and global demand.
The Ministry of Heavy Industries (MHI) is hosting a pivotal conference to evaluate the progress and effectiveness of the PLI-Auto scheme. This high-profile meeting is chaired by the Minister of Heavy Industries, Mahendra Nath Pandey. “The MHI perceives PLI-Auto applicants within the automotive realm as invaluable stakeholders in this endeavour,” the ministry highlighted.
Various industry heavyweights, including PLI-Auto applicants, test agencies, and other stakeholders, are set to grace the conference. Their collective presence promises in-depth discussions, knowledge exchange, and strategies to address the initiative’s challenges.
An official statement shed light on the transformative potential of these government initiatives, stating, “These schemes are expected to have a cascading effect on the growth trajectory of our automotive sector. By 2030, we envision the Indian automotive industry solidifying its position as the third-largest in the world.”
India’s aggressive roadmap doesn’t stop there. The country is gearing up to double its auto industry’s valuation to a staggering INR 15 lakh crore by the close of 2024. Such growth mirrors the positive investor sentiment surrounding this sector. As of September 2022, the auto industry has attracted foreign direct investment (FDI) inflows to US$ 33.77 billion, dating back to April 2000. Remarkably, this constitutes approximately 5.48% of the total FDI inflows that India has witnessed in the corresponding time frame.
The government’s proactive support, combined with industry collaboration and foreign investment, makes the goal of India becoming a global automotive powerhouse by 2030 both achievable and exciting.
