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How Progressive Policy Has Enabled The Evolution Of Indian Automobile Industry
Bureaucracy Today
|February 01 2017
The stepping up of the Indian automobile sector began when the Ministry of Heavy Industries and Public Enterprises announced the Auto Policy 2002 to promote its integrated, phased, enduring and self-sustained growth. For the first time a national level policy support was declared to promote the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country. However, the period of 2006-2016 was a step further from Auto Policy 2002.
Year 2000-2001: About 4.8 million vehicles were produced, 4.6 million vehicles were sold and 168 thousand vehicles were exported, valuing USD 308 million. Year 2015-2016: As many as 24 million vehicles were produced, 20.5 million vehicles were sold and 3.6 million vehicles were exported, valuing USD 8,463 million.
In just 15 years,the production of vehicles multiplied five times,their sales increased 4.4 times and their exports went up 22 times!
Such has been the growth story of the Indian automobile industry, one of the main pillars of our economy. It is rightly called the leading sunrise sector.
The period of 2006-2016 was a step further from Auto Policy 2002. It set growth targets for the automotive industry and recommended interventions to make India a global automotive hub. The Mission Plan envisaged making India the destination of choice in the world for design and manufacture of automobiles and auto components, with the output reaching a level of USD 145 billion (accounting for more than 10% of the GDP) and providing additional employment to 25 million people by 2016. It envisaged an increase in the automotive industry from the level of Rs 169,000 crore to reach Rs 561,200–Rs 731,400 crore by 2016.
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