India's Automotive Industry Positioned for Global Leadership
Key Ideas
  • Union Minister Nitin Gadkari foresees significant growth for India's automotive industry, aiming to become the world's second-largest in the near future.
  • India's automotive sector has witnessed remarkable advancements, with a focus on quality improvement, safety assessments, and expanding exports beyond electric vehicles.
  • The government's initiatives, including scrapping old vehicles and reducing GST on traditional cars, aim to promote electric vehicle adoption and enhance manufacturing efficiency.
  • Despite some state taxes on EVs, both the central and state governments are aligned in their support for electric vehicles as part of their sustainable transportation vision.
Union Minister Nitin Gadkari expressed optimism about the Indian automotive industry's growth during the Business Today Mindrush 2025 forum. He highlighted the industry's current size at Rs 22 lakh crore, emphasizing its potential to become the second-largest globally. Gadkari praised the technological advancements driving this growth and stressed the quality improvements seen in indigenous car manufacturing. He mentioned the Bharat New Car Assessment Program (NCAP) enhancing safety standards. Additionally, Gadkari projected an increase in India's automobile exports, including two-wheelers, three-wheelers, and buses, fueled by innovations like hydrogen-based fuel. The government's policy of scrapping old vehicles and reducing GST on petrol and diesel cars aims to cut manufacturing costs and promote EV adoption. Despite some states increasing taxes on EVs, the central government is committed to supporting electric vehicles. Overall, India aims to strengthen its position in the global automotive market through a combination of industry advancements and policy support.
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