Automotive Industry: Powering India’s Participation in Global Value Chains: NITI Aayog has recently released a report titled "Automotive Industry: Powering India’s Participation in Global Value Chains.
o Export Trends: Auto component exports stood at $20 billion in 2023, accounting for 3% of global trade; target set to reach $60 billion by 2030.
o Domestic Demand: Rising middle class and policy support are fueling demand for EVs and small cars.
o Trade Balance: Auto component trade ratio is 0.99, indicating near balance but untapped export potential.
o Policy Support: Key schemes include PLI, FAME-II, PM E-Drive, and ACC Battery Storage, aiding manufacturing scale-up.
o GDP Contribution: Contributes 7.1% of India’s GDP and nearly 49% of manufacturing GDP.
o Sectoral Linkages: Strong linkages with steel, rubber, electronics, glass, and IT.
o Employment Potential: Potential to add 2–2.5 million new jobs by 2030.
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