India Becomes the World's Third-Largest Automobile Industry

Why in News?

The Union Minister for Road Transport and Highways announced that India has become the world's 3^rd-largest automobile industry, surpassing Japan.

India's Automobile Industry

• Global ranking – 3^rd largest automobile market.
• The only countries ahead are:
  1. United States.
  2. China.
  3. India.
• The industry's valuation has grown from ₹14 lakh crore in 2014 to an estimated ₹22 lakh crore by 2025.
• The sector generates approximately 4.5 crore jobs.
• It also contributes significantly to India's export sector.
• India aims to become the world's largest automobile industry within the next five years.

Infrastructure Development and Logistics

• Enhancements in road infrastructure have led to a reduction in logistics costs.
• Logistics costs have reportedly decreased from 16% to 10%, with an additional reduction target of 9% by December.
• The development of expressways and highways has resulted in the following outcomes:
  • Reduction in travel time.
  • Improved connectivity.
  • Promotion of economic development in areas surrounding highways.
  • Enhanced supply-chain efficiency.

Sustainable Practices in the Automobile and Road Sector

• Waste-to-Road Initiative
  • Municipal waste is utilised in road construction projects.
  • Approximately 1.8 million tonnes of municipal waste have been incorporated into road construction.
  • This initiative advances waste management and supports circular economy principles.
• Alternative Fuel-Based Vehicles – Tractor manufacturers are encouraged to introduce the following technologies:
  • Flex-fuel engines.
  • Ethanol-powered engines.
  • Compressed Natural Gas (CNG) engines.
  • Electric engines.
• Electric tractors have the potential to help farmers save up to Rs.1.5 lakh annually.
• Hydrogen Economy – Indian farmers are increasingly involved in the production of hydrogen and other alternative energy products.
• This approach promotes the adoption of alternative energy sources and reduces reliance on imported fuels.
• There is potential for this strategy to transform India into an energy-exporting nation.

Significance

• Boosts economic growth and employment through stronger manufacturing, industrial output, exports, and direct/indirect job creation.
• Promotes sustainable and inclusive development by improving infrastructure, enhancing energy security, supporting EVs and alternative fuels, and creating opportunities for the rural economy.

Reference

News on Air | World's Third-Largest Automobile Industry