The government plans to create 65 million jobs by 2026, said Mr. Bandaru Dattatreya, Minister for Labour and Employment. He further said, the government recognises the importance of skilling the workforce, has allocated Rs. 16,000 crore for skilling.
Mr. Dattatreya further said that Industry should focus more on social security of employees to increase productivity.
Mr Girish Shankar, Secretary, Ministry of Heavy Industries & Public Enterprises said, there is a huge gap, which the auto industry must address to ensure 'Make in India' is really creating and developing in India. The Original Equipment Manufacturer (OEM) need to make substantial investments in engineering R&D for designing and developing in India, so that India graduates to a truly Auto Engineering hub rather than continue to be a place to manufacture to prints only.
We request the auto majors to consider this seriously and fast enough. Also, suggest to us as to how to support this through an appropriate policy framework. We are already working towards this direction, said Mr. Shankar.
Secretary, Ministry of Heavy Industries & Public Enterprises said, Department of heavy industries being the administrative ministry for the automotive industry has onus of leading and steering the policy alignment for the industry to meet the expectations towards Green Mobility in India.
We have finalised the net automotive mission plan (AMP) 2016-2026. AMP 2026 is, as was the case for the previous one, a combined effort of the government of India and the industry to chart a growth path that we jointly seek to achieve. It also seeks to define the trajectory of evolution of the automotive ecosystem in India including the glide path of specific regulations and policies that govern a wide range of parameters that affect the industry.
As an outcome of the AMP 2026 we are planning that the Indian Automotive industry will grow 3.5-4 times in value from its current output of around Rs. 4,64,000 crore in 2015 to about Rs. 16,16,000- 18,89,500 crore by 2026 considering an average GDP growth ranging between 5.8% to 7.5% during the period.
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The Auto industry generates demand for the rest of the manufacturing sector. Being the leading sector for overall economic growth, this sector is the driving engine for the Make in India programme, targeting an annual production of RS. 16 to 19 lakh crore in terms of its size and establish itself firmly on the global stage. By 2026 India could stand first in the world in production and sale of small cars two wheelers, three wheelers and buses, third in passenger vehicle and heavy trucks all adding up to 12% of GDP.
Exports of the automotive vehicles which was at the level of Rs 62,500 crores in 2015, is targeted to go up to between Rs. 2,23,300 crores by 2026. Besides it would also be a key player in skill India programme targeting an additional 65 million jobs said Mr. Shankar.
The government of India plans to introduce a new Green Urban Transport Scheme with a central assistance of about Rs. 25,000 crores aimed at boosting the growth of urban transport along low carbon path for substantial reduction in pollution and providing a framework for funding urban mobility projects at National , State and City level with minimum recourse to budgetary allocation support by encouraging innovative financing projects.
Mr R S Kalsi, Chairman, Auto Council ASSOCHAM, thanked the government for being considerate to the needs of industry and cited path breaking efforts in highway development, progressive regulations and tax reforms as major positives.
Mr Kalsi assured that the industry was fully committed to Greening India and that the increase in taxation on hybrid cars under GST has surprised automobile manufacturers as well as the component industry. He drew attention to the National Electric Mobility Mission Plan 2020, and said in response to the government's call, industry had invested in hybrid technologies and was now planning to step up investment and bring newer products.
Emphasising the close connection between electric and hybrid technology, Mr Kalsi said key components such as electric motor and lithium ion battery are common to both these clean technologies. Encouraging hybrid technology now, which is relatively less expensive and does not require charging infrastructure, will lead to localization of parts and reduction in cost, thus helping build the eco system for electric mobility in India.
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