India’s Road to Global Automotive Leadership: Insights from NITI Aayog’s Latest Report

Current Affairs National

Posted by newadmin on 2025-04-14 08:55:12 |

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NITI Aayog’s recent report, “Automotive Industry – Powering India’s Participation in Global Value Chains”, outlines a bold vision to transform India into a global automotive powerhouse. With the global automobile output reaching 94 million units and a component market worth $2 trillion in 2023, India stands as the fourth-largest producer, manufacturing nearly 6 million vehicles annually.

Despite this scale, India holds only a 3% share in the global automotive component trade. The report identifies key challenges such as high operational costs, infrastructure gaps, and low integration into global value chains. A significant push is needed in R&D, high-precision manufacturing, and technological upgrades.

Emerging trends like electric vehicles (EVs) and Industry 4.0 are reshaping the global landscape. NITI Aayog emphasizes the need for India to capitalize on these shifts through targeted fiscal and non-fiscal interventions. Proposed strategies include operational expenditure support, skill development programs, R&D incentives, and simplification of regulations. Adoption of advanced manufacturing technologies and stronger global partnerships are also recommended.

Looking ahead to 2030, the vision is ambitious: increase component production to $145 billion, boost exports to $60 billion, and raise India's global value chain share to 8%. This growth is projected to create up to 2.5 million jobs, positioning India as a key player in the global automotive ecosystem.

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