Union Minister HD Kumaraswamy Highlights Growth and Sustainability in Indian Automobile Industry
New Delhi [India], September 10: Union Minister HD Kumaraswamy emphasized the significant role of the Indian automobile industry in driving the nation’s economic growth during the 64th SIAM Annual Convention titled Sustainable Mobility Journey towards Viksit Bharat.
Kumaraswamy stated, “With a turnover of Rs 20 lakh crore, the sector contributes approximately 6.8 percent to the GDP and accounts for around 40 percent of India’s manufacturing sector. Additionally, the automobile industry employs over 30 million people, reflecting its critical position in India’s industrial landscape.”
He highlighted the industry’s resilience despite global supply chain disruptions and pandemic challenges over the past 2-3 years. All segments, including commercial and passenger vehicles, three-wheelers, two-wheelers, and auto components, have made a strong recovery, establishing India as an emerging hub for automobile production.
Kumaraswamy reiterated India’s commitment to sustainable growth, recalling Prime Minister Narendra Modi’s ‘Panchamrit’ roadmap unveiled at COP26 in Glasgow. “The roadmap reaffirms India’s determination to achieve net-zero carbon emissions by 2070, along with cutting carbon emissions by 1 billion tonnes by 2030. The Government of India, through various initiatives, has been actively promoting sustainable mobility in the country,” he said.
The Ministry of Heavy Industries (MHI) has supported this transition with schemes such as the Production Linked Incentive (PLI) for Automobile and Auto Components, and the PLI for Advanced Cell Chemistry (ACC). To further support the Make in India initiative and strengthen the EV ecosystem, the Government has introduced a scheme to promote the manufacturing of electric passenger cars. “Under this scheme, investing companies can avail of a concessional import duty of 15 percent, significantly lower than the existing rates of 70 percent or 100 percent, thereby fostering innovation and competition in the EV market,” Kumaraswamy added.
The Minister also noted the remarkable growth in electric vehicle penetration in India, with a 90 percent increase in electric passenger vehicles and a 30 percent rise in electric two-wheelers in 2023-24.
Doubts Revealed
Union Minister -: A Union Minister is a member of the central government in India who is in charge of a specific department or ministry, like education or health.
HD Kumaraswamy -: HD Kumaraswamy is a politician in India who has served in various important roles, including as a Union Minister.
Indian automobile industry -: The Indian automobile industry includes companies that make cars, trucks, and other vehicles in India.
SIAM Annual Convention -: SIAM stands for Society of Indian Automobile Manufacturers. The SIAM Annual Convention is a big meeting where people discuss the automobile industry in India.
Rs 20 lakh crore -: Rs 20 lakh crore is a way to say 20 trillion rupees, which is a very large amount of money.
GDP contribution -: GDP stands for Gross Domestic Product, which is the total value of all goods and services produced in a country. The automobile industry’s GDP contribution means how much it adds to the country’s economy.
PLI schemes -: PLI stands for Production Linked Incentive. These are government programs that give money to companies to help them produce more goods.
electric vehicles -: Electric vehicles are cars or other vehicles that run on electricity instead of petrol or diesel.