Nitin Gadkari Calls on Automotive Industry to Reduce Import Dependence and Promote Exports; Motorways to streamline commercial movement
India’s auto sector, which recently overtook Germany to become the world’s fourth largest auto industry, is moving towards global standards. Aiming to achieve an export surplus by reducing the industry’s reliance on imports and exporting more, Nitin Gadkari, Minister of Roads, Transport and Highways (MoRTH), Govt. of India has urged Indian automakers to come up with alternative solutions to increase exports and reduce imports. The minister is also aiming for “100% autonomy” for the automobile industry which can only happen when the import is minimal or even zero.
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Recent developments like Suzuki Motor Corporation’s next lithium battery plant in Gujarat and Vedanta and Foxconn set up 1,000-acre semiconductor factory in the same state are also steps in this direction as it locates the development of new technologies and the manufacture of advanced automotive products (AAT). The “Indianization” or localization of these new components is likely to attract more ancillary component manufacturers and other sectors such as the software and electronics industry, among others. New players joining the fray with more investment will expand the market and accelerate growth, making the sector self-sufficient and less dependent.
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Vedanta and Foxconn are setting up a 1,000 acre semiconductor factory in Gujarat.
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Estimated to become the third largest in the world by 2030, the industry is currently valued at $222 billion and contributes 8% of the country’s total exports and in turn accounts for 7.1% of India’s GDP . Upcoming programs like Bharat New Car Assessment Program (NCAP) and CAFE standards (efficiency standards) along with strict emission standards ensure an improvement in product quality, which will also increase their acceptance in the global market, in turn boosting exports.
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Upcoming programs like Bharat NCAP will increase acceptance of Indian products in global markets – Gadkari.
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Gadkari also mentioned the creation of 27 green highways that will facilitate and speed up the movement of inventory across the country, thereby increasing manufacturing and operating efficiency. Travel time between Delhi and Jaipur will be reduced to 2 hours, Delhi to Mumbai will take 12 hours, Chennai to Bangalore will be covered in 2 hours.