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Govt. aiming to grow Auto Sector turnover to 15 Crore in the next 5 years.

Govt. aiming to grow Auto Sector turnover to 15 Crore in the next 5 years.


Indian Govt. to focus on elevating Auto sector turnover!

Union Road Transport Minister, Nitin Gadkari has said that the government is focusing on double the turnover of the Automobile industry in the next five years. The current turnover is 7.5 lakh including 3 crores from that of exports.

In his speech at the inauguration of the Maruti Suzuki and Toyota Tsusho Group’s government-approved scrapping facility in Greater Noida, he shared his futuristic vision for the domestic Automobile industry. “My aim is to make the auto industry to the volume of ?15 lakh crore within the next five years.”  

 

As India is aiming for zero carbon emissions by 2070, he also pointed out that the government is promoting the usage of CNG, LNG, green hydrogen, ethanol fuels and electric vehicles in the Transportation systems to achieve the target. Prime Minister Narendra Modi recently announced this target at the COP26 Summit.

 

The country’s current fossil fuel import amounts to ?8 lakh crores and it could reach ?25 lakh crores in the next five years. To reduce this figure and encourage the use of alternate fuels, the government has been working on diversifying agriculture to energy and power sectors.    

   Bioethanol is an effective motor fuel that is obtained from sugarcane and molasses and the government has already allowed the production of bioethanol from rice, corn and food grains also decided to open ethanol pumps just like existing petrol pumps. “It is truly a win-win situation for its stakeholders. It will be beneficial in tackling pollution. Also, it is favourable for the tribal, agricultural areas of the country, Gadkari said.                    

He also spoke on the significance of vehicle scrappage policy and the opening of such points. Opening of such centres will produce at least 2 lakh jobs directly and will also significantly increase sales of automobiles. He also added, “Through the vehicle sales, incremental GST revenue of worth ?30,000-40,000 lakh crore would also be generated, which is also beneficial for the government.”

Apart from that, scrapping will increase the availability of raw materials like aluminium, steel and copper at it will be made available at lower costs to reduce the production cost of the vehicles, thus reducing raw material costs by at least 33 percent. He also added, “It will reduce our dependence on imports as we still import materials like aluminium, copper and many other things. The industry's issue of shortage of semi-conductors will be resolved by this policy.”