The Indian Government has unveiled an ambitious “Automotive Mission Plan-2016” to make India a global hub of automobiles and auto components contributing more than 10% of the country’s GDP in ten year’s time.
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Broad details were outlined in a report on the Indian business website NetIndia123.
“The Automotive Mission Plan is a goal for both Government and Industry,” Heavy Industries and Public Enterprises Minister Santosh Mohan Deb said as he handed over the document to the Society of Indian Automobile Manufacturers (SIAM) at its annual convention in New Delhi.
Calling for a wider public debate to make the document inclusive, he urged the industry and other stakeholders to go through the document at the earliest and give their valuable inputs so that the Automotive Mission Plan can be formulated during the current calendar year itself.
The vision aims at India emerging as the destination of choice in Asia for the design and manufacture of automobiles and automotive components.
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By GlobalDataThe plan is looking for output of India’s automotive sector of US$145bn and additional employment of 25 million people by 2016.
The government would play a key enabling role in facilitating infrastructure creation, promote country’s capabilities, create a favourable and predictable business environment, attract investments and facilitate R & D, the Minister said in his keynote address.
On the other hand, the role of industry will primarily be in designing and manufacturing products of world class quality standard, cost competitiveness, improving productivity of both labour and capital, achieving scale and R&D capabilities and showcasing India’s products in potential markets.
Mr Deb said one of the greatest challenges before the auto industry today was increasing labour productivity and urged the auto industry to join the Government in ensuring investment in human resource development.
The Minister hoped that the industry would be pragmatic and invest sufficiently for productivity improvement and regretted that the investment in R&D in the auto sector was not commensurate with its growth potential.
In order to facilitate the R&D in this sector, the Ministry has taken an initiative to sponsor the “Indo-German Symposium on Alternative Drives and Fuels” on September 9. The Minister also announced that the government would henceforth support those companies which would achieve substantial reduction in energy consumption and at the same time look for use of alternative fuels including hybrids.
