NITI Aayog, in collaboration with the Department for Promotion of Industry and Internal Trade (DPIIT) and the Automotive Component Manufacturers Association (ACMA), has released a strategic report titled “Automotive Industry: Powering India’s Participation in Global Value Chains.

• The report was launched by Vice Chairman, NITI Aayog Suman Bery, in the presence of CEO, NITI Aayog BVR Subrahmanyam.
• Despite being the fourth-largest automobile producer globally, India’s share in automotive component trade stands at just 3%.
• NITI Aayog’s report also outlines several strategic fiscal and non-fiscal interventions aimed at enhancing India’s global competitiveness in the automotive sector.
• It presents a roadmap for scaling India’s participation in global value chains by 2030.

Key Findings:

• India’s share in global automotive component exports remains modest at 3% (around $20 billion).
• The sector is hindered by high operational costs, infrastructure gaps, and limited integration into global value chains.
• Low R&D investment affects innovation and the ability to compete in advanced component manufacturing.
• India has minimal presence in high-precision segments like engine and transmission components.
• Components are categorized into four groups—based on complexity and manufacturing maturity—to guide targeted interventions.

Vision 2030 Goals:

• Increase production of auto components to $145 billion.
• Boost exports from $20 billion to $60 billion.
• Achieve a $25 billion trade surplus in the sector.
• Expand India’s share in global automotive value chains from 3% to 8%.
• Create 2 to 2.5 million new direct jobs, raising total employment to 3–4 million.

This roadmap by NITI Aayog emphasizes that India’s rise in the global automotive landscape will require coordinated efforts from the government, industry, and global partners. With the right interventions, India can emerge as a top hub for automotive component manufacturing by 2030.