Indian Auto Industry to attract investments worth Rs 2,50,000 cr in next 10 years

The Central Government of India expects that the Indian Automobile industry will attract approximately Rs. 2,50,000 crore worth investments in coming 10 years. It is also expected that the unit sales of four wheelers in the country is estimated to grow upto 10 million units per year from the current rate of 2.5 million units per year. Almost all the regional and international brands viz. Maruti, Hyundai, Tata, Mahindra, Volkswagen to name a few.

Mr. Praful Patel, Minister of Heavy Industries and Public Enterprises, reportedly said that this is good news for the car industry in all possible ways. For a start, this investment will create over 20 millions jobs till 2020. The growth prospects may lead to an orderly and continuation of a better growth in the car industry in India.

The Society of Indian Automobile Manufacturers has also reportedly said that Indian passenger car market has left behind US which perked up at 14.40 per cent. India is soon becoming the top growing passenger car market in the world, in period from January till June this year.Mr. Praful Patel is also said to have said that the auto industry approximately contributes 21 per cent to the manufacturing sector in India. The present turnover is $75 billion while exports amounts itself to be around $ 11 billion.

In order to meet the requirement for such a huge investment, the government is also expected to take some effective measures related to taxation, labor welfare and skill developments and land availability for the auto industry, added Mr Patel reportedly.

Meanwhile, as part of early measures to boost exports from the auto sector, the Duty Entitled Passbook (DEPB) scheme that provides handsome incentives to the exporters has been extended till September 30th. The government is also said to have the scheme under consideration and shall be further discussed with the Department of Revenue.