Synopsis
India has the potential to triple its automotive exports to $60 billion by 2030, creating 2-2.5 million direct jobs and achieving a $25 billion trade surplus. This vision aims to position India as a global leader in innovation-driven manufacturing in the automotive sector.Key Takeaways
- India can potentially triple automotive exports to $60 billion.
- Creation of 2-2.5 million direct jobs by 2030.
- $25 billion trade surplus projected.
- Emphasis on EVs reshaping the manufacturing landscape.
- Integration of advanced technologies can enhance production efficiency.
New Delhi, April 15 (NationPress) With the proper enabling environment for the automotive industry, India has the potential to triple exports to $60 billion, achieve a $25 billion trade surplus, and create more than 2-2.5 million direct jobs by 2030. This would position India as a globally competitive, innovation-driven manufacturing hub, according to government officials on Tuesday.
The automotive sector is a vital component of India's manufacturing and economic advancement, contributing 7.1 percent to the nation’s Gross Domestic Product (GDP) and 49 percent to the manufacturing GDP.
As the fourth-largest automobile producer worldwide, India has the necessary scale and strategic advantages to become a leading player in the global automotive value chain, as highlighted by a NITI Aayog report.
In the fiscal year 2023–24, India has experienced remarkable growth in vehicle production, with over 28 million units manufactured. Currently, India's share in the global auto components trade stands at around 3 percent or $20 billion.
The rise of electric vehicles (EVs) is reshaping manufacturing priorities. In 2023, China produced over 8 million EVs, while the EU and the US are hastening EV adoption through regulatory measures and financial incentives. This shift is increasing the demand for batteries, semiconductors, and advanced materials.
The report indicates that the incorporation of AI, robotics, digital twins, Internet of Things (IoT), and 3D printing is enhancing production efficiency.
Numerous global car manufacturers are investing significantly in developing smart factories, where AI, IoT, and robotics are seamlessly integrated into every facet of production. Countries like Germany and South Korea are at the forefront of smart factory implementation, according to the report.
Despite a robust manufacturing foundation, India currently holds only 3 percent of the global traded auto components market, indicating substantial opportunities for growth.
The Vision 2030 roadmap aims to elevate production to $145 billion, boost exports to $60 billion, and create 2-2.5 million jobs. Government initiatives such as FAME, PM E-Drive, and PLI have mobilized over Rs 66,000 crore to support EVs and localization efforts. With focused reforms and integration into the global value chain, India can increase its share of global component trade from 3 percent to 8 percent by 2030.
With an optimal blend of ambition and action, India can establish itself as a globally recognized provider of next-generation mobility solutions.
