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NITI Aayog Released a Report on "Automotive Industry: Powering India's Participation in Global Value Chains (GVCs).

National | Dated: 15 Apr 2025

In April 2025, the National Institution for Transforming India (NITI Aayog) released a comprehensive report titled "Automotive Industry: Powering India's Participation in Global Value Chains". This report is the second in the series on Global Value Chains (GVCs) and was launched by Suman Bery, Vice Chairman, NITI Aayog.

🎯 Key Highlights:

  • - The report delves into the transformative potential of India's automotive component industry and outlines a strategic roadmap to enhance India's role in the global automotive ecosystem.
  • - India has become the fourth-largest automobile producer globally, following China, the United States of America (USA), and Japan, with an annual production of nearly 6 million automobile units.
  • - The Indian auto industry produced over 28 million vehicles from April 2023 to March 2024, including Passenger Vehicles, Commercial Vehicles, three-wheelers, two-wheelers, and Quadricycles.

💡 Other Important Facts:

  • (i) India’s automotive industry contributes 7.1% to its Gross Domestic Product (GDP) and 49% to the manufacturing GDP.
  • (ii) India’s share in the global automotive component trade stands at around 3% (~USD 20 billion). The trade ratio of India’s auto components is nearly neutral (~0.99), with exports and imports almost balancing each other.
  • (iii) The report forecasts a bright future where India's automotive component production reaches USD 145 billion by 2030, with automotive component exports expected to triple to USD 60 billion (from USD 20 billion).

📚 Test Your Knowledge:

According to the NITI Aayog report, India is currently the ___ largest automobile producer in the world.

Correct Answer: Fourth

🚀 Quick Recap:

About NITI Aayog

  • CEO : Shri B.V.R. Subrahmanyam
  • Headquarters : New Delhi