Pune: Union Minister for Road Transport and Highways, Nitin Gadkari, expressed confidence that India’s automobile sector will soon surpass the United States in terms of growth and economic contribution.
Speaking at an industry event, Gadkari highlighted the significant role of the Goods and Services Tax (GST) sector in the Indian economy and its employment generation capabilities. Currently, the GST sector is the largest tax contributor in the country, providing employment to over 45 million citizens.
Gadkari revealed the ambitious target of doubling the size of this sector within the next five years, with the goal of reaching an economic contribution of ₹55 trillion.
He stated, “India's automobile sector has experienced rapid growth. Previously, our sector’s economy was valued at ₹7 trillion, placing India in the seventh position globally. Today, India has surpassed Japan and is ranked third. Globally, the United States leads with a ₹78 trillion economy in the automobile sector, followed by China at ₹44 trillion, and India at ₹22 trillion."
Gadkari noted that India is home to all major global automobile manufacturers, and that Indian entrepreneurs have made significant advancements in the battery industry. He also announced that India is set to become a leading hub for semiconductor production within two years, with Indian engineers playing a pivotal role in this transformation.
Addressing the country’s dependence on fossil fuel imports, which amount to ₹22 trillion annually and contribute to 40% of total pollution, Gadkari called for research that addresses local needs, is cost-effective, and is scientifically validated.
In his speech, Gadkari also touched upon broader developments in the automotive and technology sectors:
Within the next five years, diesel vehicles would disappear from urban roads, replaced by electric vehicles.
Almost all major global automobile brands are now present in India
India recently discovered the sixth-largest lithium-ion battery reserve in the world, located in Jammu and Kashmir.