Volume : 8, Issue : 12, DEC 2022

A STUDY ON GROWTH AND EXPORT POTENTIAL OF AUTOMOBILE INDUSTRY IN INDIA

DR. VELU SURESH KUMAR

Abstract

The automobile industry is one of the most important drivers of the economic growth of India and with high participation in global value chains. It plays a key role in both macroeconomic expansion and technological advancement. The industry contributes almost 6.4 per cent of India's GDP and 35 per cent of manufacturing GDP and is a leading employment provider. India enjoys a strong position in the global heavy vehicles market as it is the largest tractor producer, second-largest bus manufacturer, and third-largest heavy truck manufacturer in the world. Two-wheelers and passenger vehicles dominate the domestic demand. In addition to streamlining and simplifying the regulatory policy framework for ease of doing business, the Indian government also introduced the Automotive Mission Plan 2006-2016 in 2006 and the AMP 2016-2026 in 2016. Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) and the National Electric Mobility Mission Plan (NEMMP) 2020 are two other significant government initiatives. These programs/plans envisioned a strong and rapid expansion of automobiles to achieve the desired position among the international leaders in the automotive industry, such as the United States, Japan, Europe, and China. Due to the impact of COVID-19 and the consequent lockdown since March 2020, the automobile industry moved into the negative zone in terms of production and domestic sales. The second wave of COVID-19 which came with much greater force, scale and speed made automobile production slow down even before the COVID-19 pandemic started. The only area where the industry has done well is the export front. Against this background, this study tried to analyse the performance of the Indian automobile industry for the period 2000-01 to 2021-22.

Keywords

ECONOMIC GROWTH, GROSS DOMESTIC PRODUCT, AUTOMOBILE, MANUFACTURING, TECHNOLOGY, NATIONAL ELECTRIC MOBILITY MISSION PLAN.

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