India's automotive industry contributes 7.1% to India's Gross Domestic Product says NITI Aayog

NITI Aayog recently released a report titled 'Automotive Industry: Powering India's Participation in Global Value Chains', India's automotive industry is a cornerstone of the nation's manufacturing and economic growth, contributing 7.1% to India's Gross Domestic Product (GDP) and 49% to manufacturing GDP. As the fourth-largest automobile producer globally, India possesses the scale and strategic depth to emerge as a global leader in the automotive value chain. The sector spans a vast ecosystem, from vehicle assembly and auto component manufacturing to deep interlinkages with critical industries such as steel, electronics, rubber, IT, and logistics. In recent years, India has seen exponential growth in vehicle production, with over 28 million units manufactured in 2023'24 alone. The industry's contribution goes beyond industrial output, and it supports millions of direct and indirect jobs, spurs innovation, and is central to India's green mobility transition, industrial ambitions, and trade strategy. Despite a strong manufacturing base, India holds only 3% share in global traded auto components, highlighting a vast scope for expansion.

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