Indian Economy News

Government is working to make India a global automobile manufacturing hub: Mr. Nitin Gadkari

  • IBEF
  • March 1, 2023

Mr. Nitin Gadkari, Union Minister of Road Transport and Highways stated that the government is working towards making India a global automobile manufacturing hub and the domestic industry is expected to be worth US$ 180 billion (Rs. 15 lakh crore) in the near term. He was speaking at the virtual inauguration of Tata Motor’s vehicle scrapping facility in Jaipur.

The Minister said the automobile sector currently contributes to 7.1% of the nation's gross domestic product (GDP) with the industry size at around US$ 94 billion (Rs. 7.8 lakh crore).

He also noted that approximately 4 crore people are employed directly or indirectly in the auto industry, and by 2025, it is anticipated that this figure will increase to 5 crores.

Mr. Nitin Gadkari highlighted the scrappage policy which enables the removal of older and unfit vehicles and the introduction of new lesser polluting vehicles in a phased manner. It has been estimated that the automotive demand generated by the scrapping policy will lead to an additional good and services tax (GST) revenue of US$ 4.83 billion (Rs. 40,000 crores) to the government and the raw material cost for new cars will go down by 30%.

The Minister emphasized his aim to develop a scrapping centre within a reach of 150 kilometres from all the city centres in order to help in establishing an organised industry.

He also highlighted Tata Motors' first registered vehicle scrapping facility in Jaipur, which has a capacity to dismantle 15,000 vehicles per annum.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.