Praful Patel estimates Indian automotive sector's turnout at $ 145 billion
Subscribe to NewsletterPlease fill your name and email ID to get our daily auto news mailer.
Praful Patel, Minister of Heavy Industries and Public Enterprises, estimated that the combined turnout of Indian automobile and auto component sector will provide more than 10 percent of the country's Gross Domestic Product (GDP) in next four years. He also revealed that the compound turnover may be in excess of $ 145 billion by 2016.
Speaking at the annual conference of Automotive Component Manufacturers Association of India (ACMA), Patel said, “The output of the automobile and auto component industry would reach $145 billion by 2016, accounting for more than 10 percent of the country's GDP and in turn generate employment for more than a million people.”
Patel has recommended the Indian auto component industry to expand their Research and Development (R&D) departments, besides increasing its budget, in order to reach global standards. According to the minister, increased investment and emphasis on R&D will help the Indian auto component industry to augment its export operations via bilateral trade accords and provincial free trade agreements (FTAs) as well.
The minister further revealed that the surge in automotive and auto component sectors have influenced the government's target projections for both the sectors under the decade long Automotive Mission Plan 2006-16. Patel further said, “As per the 12th Five Year Plan, the ministry is reviewing targets set up under the Automotive Mission Plan 2006-16.”
Reportedly, the Indian auto component sector has recorded healthy growth over the last half-decade with a growth of 15 per cent compounded yearly. Hence, the Ministry of Heavy Industries and Public Enterprises is projecting the sector as the one with great potential and knows that in coming years the industry will contribute a large fraction to the Indian economy.
- Different Car Body Types
- Honda to increase prices from January 2014
- New Mercedes-Benz C-Class expected to unveiled in December
- Teaser of Lamborghini Gallardo replacement released
- New Hyundai Santa Fe to be launched in early 2014
- Renault Duster facelift expected to be unveiled at Auto Expo 2014
- Audi Q1 set to be showcased in 2016
- Next-generation Ford Mustang to be showcased on 5th December
29 November 2013, 12:06 IST by CarTrade Editorial Team
Honda Cars India Limited, the domestic division of Japanese car maker, recently showcased the 4th Generation model of City in the country. Sources close to the development process have revealed...
Under: Honda City
02 December 2013, 12:21 IST by CarTrade Editorial Team
As 2013 is coming to an end, many car makers would want to forget the dismal performance of this year in terms of sales and profit levels. In the passenger car segment, many companies failed to...
02 December 2013, 12:45 IST by CarTrade Editorial Team
In a shocking news that sent ripples across the American film fraternity, it was leant that Paul Walker has passed way in a car accident that occurred in Southern California. Reportedly, the actor...
30 November 2013, 00:57 IST by CarTrade Editorial Team
Indian car market is loaded with models that are affordability and fuel-efficient. All players in the market know the role played by price and mileage in influencing the decision of a car buyer....