Automotive Industry To Create 65 Mn Jobs By 2026

BANGALORE: As per a joint report submitted by the government and automotive industry, the sector is expected to generate $300 billion revenue by 2026. The industry is expected to contribute over 12 percent of nation’s GDP in the coming ten years. This will also be providing more than 65 million jobs resulting in a lesser percentage of unemployment, reports The Economic Times.

The ‘Make in India’ campaign which has been introduced by the PM Narendra Modi will give preference to the automotive mission plan 2016-2026 as it will be working as the engine for the mission to be a successful one. The Automotive mission also targets to set India against the largest automotive productive nations such as China and U.S. within a period of 10 years.

It also refers that the high taxes paid for the automobiles and services are also a major cause which affects the growth of the country’s economy. Thus with the automotive mission the government and industry is aiming for a big change in the Indian economy.

The project manager at Tata Motors, Ravindra Pisharody stated that "The biggest challenge (to achieve the aim) is going to be of infrastructure. In India, the second biggest cost that we have to bear is in logistics and transportation, which is about 15 per cent, however, the projection made is quite achievable.”

Vikram Kirloskar, the president SIAM in a report shared his views, “There are speed breakers in the form of slow government policies with no clear roadmap on GST and high taxes imposed on the auto industry the cumulative burden of taxes to customers on cars goes up to 84 per cent, making the industry highly uncompetitive," Over the years there have been various measures introduced by the government for the betterment of the automotive sector in the country.

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