Automotive Industry: Powering India’s Participation in Global Value Chains

Current Context:  NITI Aayog released the report titled “Automotive Industry: Powering India’s Participation in Global Value Chains,” aiming to enhance India’s role in the global automotive market.

Key Findings:

• Global Position: India ranks as the fourth-largest automobile producer, with an annual production of nearly 6 million vehicles.​
• Trade Dynamics: India’s share in the global automotive component trade is approximately 3%, valued at $20 billion, indicating significant potential for growth.​
• Emerging Trends: The global shift towards electric vehicles (EVs) and the adoption of Industry 4.0 technologies present both challenges and opportunities for India.​

Vision for 2030:

• Production Target: Increase automotive component production to $145 billion.​
• Export Ambition: Triple exports from $20 billion to $60 billion.​
• Trade Surplus: Achieve a trade surplus of approximately $25 billion.​
• Employment Growth: Create 2-2.5 million new jobs, raising total employment to 3-4 million.​