HD Kumaraswamy Highlights Indian Auto Sector's Role in Economic Growth at SIAM Convention

Union Minister HD Kumaraswamy addressed the 64th SIAM Annual Convention, lauding the Indian automobile industry's contribution to the economy and its resilience in the face of global challenges. Emphasizing sustainable mobility, he discussed India's efforts and policies aimed at promoting electric vehicles and reducing carbon emissions.

Union Minister HD Kumaraswamy on Tuesday underscored the pivotal role of the Indian automobile industry in bolstering the nation's economic prosperity. Speaking at the 64th SIAM Annual Convention titled Sustainable Mobility Journey towards Viksit Bharat, Kumaraswamy highlighted the sector's substantial turnover of Rs 20 lakh crore, its 6.8 percent contribution to the GDP, and its 40 percent share in India's manufacturing output. The industry also employs over 30 million people.

In light of recent global supply chain disruptions and pandemic challenges, Kumaraswamy commended the industry's resilience. He noted that various segments, including commercial and passenger vehicles, three-wheelers, two-wheelers, and auto components, have rebounded significantly, positioning India as a burgeoning hub for automobile production. He also reiterated India's commitment to sustainable growth, referencing Prime Minister Narendra Modi's 'Panchamrit' roadmap from the COP26 in Glasgow aimed at achieving net-zero carbon emissions by 2070 and reducing carbon emissions by 1 billion tonnes by 2030.

Kumaraswamy highlighted government initiatives fostering sustainable mobility, particularly the Ministry of Heavy Industries' (MHI) role in supporting this transition through the Production Linked Incentive (PLI) schemes for Automobile and Auto Components and Advanced Cell Chemistry (ACC). To further bolster the Make in India initiative and enhance the electric vehicle ecosystem, he announced a scheme offering a concessional import duty of 15 percent for investing companies, a significant reduction from the standard rates of 70 percent or 100 percent. He also noted an impressive surge in electric vehicle adoption, with electric passenger vehicles and electric two-wheelers experiencing a 90 percent and 30 percent increase, respectively, in 2023-24.

(With inputs from agencies.)