The Indian government has set a target of Rs 25 lakh crore for the country's automobile sector, as part of its USD 5 trillion economy vision, the Union Minister Nitin Gadkari said on Thursday.
While a timeliine was not given, the development assumes significance given that the Central government announced in February last year that it aims to double its auto industry size to Rs 15 lakh crore by the end of 2024.
Speaking on the second day of the Vibrant Gujarat summit, Gadkari said, " We are looking at a Rs 25 lakh crore target for India's automobile industry to reach number one in the world." He added that Gujarat already has a thriving automobile industry, and it will also become a hub for electric vehicles.
Gadkari highlighted that the country's automotive industry was at number seven position in the world around a decade ago and has now reached number three.
The contribution of the auto sector to the national GDP has risen to about 7-8% now from 2.7% in 1992-93. It provides direct and indirect employment to over 19 million people. In terms of global rankings in manufacturing output, it is second largest in two-wheelers, seventh largest in commercial vehicles, third largest in passenger vehicles, and the largest in tractors.