Boosting India's Automotive Sector

Niti Aayog has recommended fiscal incentives to enhance the manufacturing of auto parts and the development of large-scale automotive clusters.

Objectives

• Triple India's auto parts exports to $60 billion by 2030.
• Increase annual production to $145 billion within the next five years.
• Generate 2-2.5 million new jobs.
• Enhance total direct employment in the sector to 3-4 million.

Recommendations

• Provide operational expenditure (opex) support to scale up manufacturing capabilities.
• Focus on capital expenditure (capex) for tooling, dyes, and infrastructure.