India’s Auto Industry to make a mark on the Global Value Chain: Report

As per NITI Aayog report, India's auto industry is rapidly growing to become a major player in the Global Automotive Value Chain and aims to scale auto component production to $145 billion by 2030. India's GVC share in auto components is expected to rise from 3% to 8% by 2030. NITI Aayog's report titled “Automotive Industry: Powering India’s Participation in Global Value Chains”  was launched by Vice Chairman, NITI Aayog Suman Bery in the presence of CEO, NITI Aayog BVR Subrahmanyam in New Delhi on Friday.The report offers an extensive analysis of India’s automotive sector. It highlights both opportunities and challenges and outlines a pathway for positioning India as a key player in global automotive markets. The NITI Aayog’s report also outlines several strategic fiscal and non-fiscal interventions aimed at enhancing India’s global competitiveness in the automotive sector. The interventions are structured across four categories of automotive components based on their complexity and manufacturing maturity which are Emerging and Complex, Conventional and Complex, Conventional and Simple and Emerging and Simple.
As per the report, in 2023, global automobile production reached approximately 94 million units and the global automotive components market was valued at two trillion US dollars , with the export share reaching nearly 700 billion dollars. India has emerged as the fourth-largest global producer after China, USA and Japan, with an annual production of nearly six million vehicles. It added that the Indian automotive sector has gained a strong domestic and export market presence, particularly in the small car and utility vehicle segments. The report also highlights that with ‘Make in India’ and its cost-competitive workforce, India is positioning itself as a hub for automotive manufacturing and exports.
Speaking on the occasion, NITI Aayog CEO BVR Subrahmanyam said that detailed analysis has been done to prepare the report. He said. the global auto component market is two trillion dollars and out of this, India’s share is 70 billion dollars.FTAs, foreign collaborations, and Joint Ventures will unlock global markets for Indian auto manufacturers, which will further help in realising the vision of generating 3-4 million jobs by 2030, said the report.