India's automotive sector serves as the foundation of the country's manufacturing and economic development, accounting for 7.1 percent of India’s Gross Domestic Product (GDP) and 49 percent of manufacturing GDP, as per a NITI Aayog report named ‘Automotive Industry: Powering India’s Participation in Global Value Chains’.
The report outlines India’s potential in the automotive sector within the Global Value Chain (GVC) and emphasizes strategic routes for achieving global leadership.
As the world's fourth largest automobile manufacturer, India has the capacity and strategic insight to become a global leader in the automotive value chain. The industry encompasses a broad ecosystem, ranging from vehicle production and auto parts manufacturing to strong connections with essential sectors like steel, electronics, rubber, IT, and logistics.
India’s automotive sector is a fundamental element of the country's manufacturing and economic development, accounting for 7.1 percent of India’s Gross Domestic Product (GDP) and 49 percent of manufacturing GDP.
In recent years, India has experienced remarkable growth in vehicle manufacturing, producing more than 28 million units in 2023–24 alone. The industry's impact extends beyond production, sustaining millions of direct and indirect jobs, fostering innovation, and playing a crucial role in India's green mobility shift, industrial goals, and trade approach.
India's trade ratio in auto parts is nearly neutral (~0.99), as exports and imports are almost equal. This also highlights the domestic sector’s narrow involvement in high-value, high-precision areas like engines and engine parts, as well as drive transmission and steering systems, where India commands only 2–4 percent of the global trade share.
We use cookies to ensure you get the best experience on our website. Read more...
