This Is The Power Of The Automobile Sector, Which Contributes Rs 33,000 Crore To The Exchequer.

The Indian automobile industry crossed the Rs 20 lakh crore mark in the financial year 2023-24 and now its contribution to the total GST collected in the country is 14-15 per cent. Society of Indian Automobile Manufacturers (SIAM) President Vinod Aggarwal said at the 64th annual session of ACMA here on Monday that the motor vehicle sector also contributes significantly to direct and indirect employment generation in the country. Let us tell you that the highest GST collection till date was Rs 2 lakh 10 billion. According to this, if we look at it, it contributes 15 per cent i.e. Rs 31.5 billion.

This large contribution to GDP

Aggarwal said the Indian automobile industry has crossed the Rs 20 lakh crore mark in the financial year 2023-24… We contribute 14-15 per cent of the total goods and services tax (GST) collected in the country. He said the automobile industry will contribute more to the country’s gross domestic product (GDP) than the current level of 6.8 per cent. Aggarwal said not only the growth numbers are important but the change in technology is also equally important.

What does the report say?

The president of the Automobile Industry Association said that we have become the third largest market for passenger vehicles, the largest market for two and three wheelers and the third largest market for commercial vehicles. This also at a time when the country is moving towards achieving the goal of a developed India by 2047. Aggarwal said that the automobile industry is all set to grow even faster and contribute significantly to the development of the country. The automobile industry has identified 50 critical components for local production with an aim to reduce dependence on imports.

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Aggarwal said SIAM, in collaboration with ACMA, has embarked on a journey to increase indigenous manufacturing and has voluntarily set targets to increase localisation. Aggarwal told the annual session of ACMA here that we are committed to reducing import content from 60 per cent to 20 per cent by 2025 from the base level of 2019-20. In this regard, a target of reduction of Rs 20,000 to 25,000 crore in five years has been set. We have successfully achieved the first phase of reducing imports by 5.8 per cent in the first two years.

Growing demand for semiconductor chips

Speaking at the session, Shraddha Suri Marwah, President, Automotive Component Manufacturers Association (ACMA), said that the industry is looking forward to the third edition of the Motor Vehicle Mission Plan. She said that the industry is facing several challenges, especially in bridging the skill gap and maintaining international quality standards. Marwah said that collaboration with educational institutions and investment in skill development is therefore necessary. Apart from this, industry collaboration is also equally important. She said that the increasing demand for electronic components and semiconductor chips underlines the need for a strategic alliance.