"Automotive Industry: Powering India’s Participation in Global Value Chains Report released

Current Context: NITI Aayog released a report titled "Automotive Industry: Powering India’s Participation in Global Value Chains" on April 11, 2025.

• The report highlights India's automotive sector as a cornerstone of the nation's manufacturing and economic growth, contributing 7.1% to GDP and 49% to manufacturing GDP.
• It outlines India's potential to become a global leader in the automotive value chain, emphasizing opportunities in electric vehicles (EVs), Industry 4.0 technologies, and sustainable practices.

Key insights include:

• Global Position: India is the fourth-largest automobile producer globally, with an annual production of nearly 6 million vehicles.
• Challenges: Limited penetration in high-value segments like engine components and steering systems, with only 3% share in global auto component trade.
• Vision 2030: Aims to scale auto component production to $145 billion, triple exports to $60 billion, and create 2–2.5 million jobs.
• Policy Recommendations: Focus on fiscal and non-fiscal interventions, including R&D, skill development, and adoption of advanced manufacturing technologies.

Question:

Q.1 What is the contribution of India's automotive sector to the national GDP as per the NITI Aayog report?
a) 4.5%
b) 7.1%
c) 10.2%
d) 12.5%

Answer: b) According to the report, India's automotive sector contributes 7.1% to the GDP, reflecting its crucial role in the economy.