NITI Calls For Reforms To Treble Auto Parts Exports In Five Years

India must implement reforms to triple its automotive components exports to $60 billion in the next five years, according to a NITI Aayog report unveiled on Friday.

- DHRUVAKSH SAHA AND PUJA DAS

This growth would position India as a formidable player in global markets, achieving a trade surplus of nearly $25 billion and increasing its share in the global value chain of auto components from 3 per cent to 8 per cent, the report says.

Such progress is projected to generate 2-2.5 million additional large-scale employment opportunities, bringing total direct employment in the sector to 3-4 million people, according to the report.

"Realising this ambitious vision will require strategic and focused policy initiatives in high-value automotive manufacturing," the Centre's official policy think tank said in its report titled Automotive Industry: Powering India's Participation in Global Value Chains.

The report envisions India advancing to approximately $145 billion in automotive component manufacturing by 2030.

The think tank suggested a production support scheme comprising two major aspects: operating expenditure support for scaling manufacturing of specific components and capital expenditure support for manufacturing tools and dyes for manufacturing those components in India.