Prime Minister Narendra Modi has recently initiated the “Make in India” campaign and it appears the primary supporter is the country’s auto industry – plans call for a fourfold increase of production by 2026, according to recently unveiled outlines.
The Indian government and motor industry will seek the total value of automotive-related output to grow to up to 18.9 trillion rupees ($285 billion) by 2026, with the strategy outlined Wednesday under the Automotive Mission Plan 2016-2026. The tally would mean the high limit of forecasts would be achieved and the average gross domestic product surge would be of 7.5 percent during the timeframe. The plan includes all types of vehicle production – from cars and trucks to motorcycles, scooters, agricultural machines and components both for the local market and exports. According to the document that showcased the plan, there will be incentives introduced to increase the nation’s output capacity, a concerted policy to scrap older vehicles and the slide of import duties in the case of raw materials. With the steps in action, Modi’s campaign could lead to the manufacturing totaling 25 percent of GDP by 2022 from 16 percent now.
“The automotive industry can be termed as the mother of the manufacturing sector in an economy, as its fortunes directly impact the fortunes of several related manufacturing industries,” commented the plan’s outline. “The rapid growth of the Indian automotive industry will provide a strong fillip to the micro & small and medium industries of the country across multiple sectors.”
Global automakers from GM to Toyota have set up massive dealer networks and production facilities in the country, lured in by the low ownership rate of passenger cars and India being one of the rapid rising economies in the Asian region. According to figures sourced from the Society of Indian Automobile Manufacturers, auto deliveries in the four months through July soared by 7.5 percent.