FCC

Niti Aayog Pushes Auto Growth

2025-04-15

Niti Aayog has proposed a policy roadmap to double India's automotive component output to $145 bn and triple exports to $60 bn by 2030. In its report, “Automotive Industry: Powering India’s Participation in Global Value Chains,” the think tank highlighted India’s current modest three per cent share in global trade, despite being the fourth-largest producer of auto parts. The proposed strategy includes fiscal incentives, capital support for tool development, IPR transfers, and branding assistance to strengthen the sector’s global competitiveness. Additionally, cluster development, common R&D/testing centres, and supply chain upgrades aim to reduce costs and boost efficiency.

On the non-fiscal side, it recommends FTAs, joint ventures, and market access initiatives to expand India's global footprint. Improving skills and product quality was emphasised as essential for closing the global competitiveness gap. If executed effectively, the plan could generate 2.5 million new jobs, raising total employment in the sector to 3–4 mn , and help India achieve a $25 bn trade surplus in auto components.