GS 3 – ECONOMY
Context
- Prime Minister Narendra Modi recently inaugurated Gujarat’s first lithium-ion electrode facility and flagged off India’s electric vehicle (EV) exports to 100 countries.
- For the first time, India has formally quantified its EV export footprint, highlighting its intent to strengthen its position in the global automobile industry.
Strategic Significance
- Export Orientation: Enhances India’s global presence in the automobile sector.
- Domestic R&D: Reduces dependence on costly imports, making EVs more affordable and competitive.
- Policy Alignment: Supports India’s target of achieving 30% EV penetration by 2030.
India’s Automobile Sector: Current Landscape
- Domestic Market Scale: India is the third-largest automobile market globally, with annual sales exceeding 4 million cars.
- Export Growth: Automobile exports have doubled over the last decade, reaching about ₹1.2 lakh crore.
- Global Footprint Expansion: India now exports not just passenger vehicles but also metro coaches, rail coaches, and locomotives, showcasing industrial diversification.
- Employment Impact: The automobile industry supports nearly 37 million jobs, contributing significantly to industrial employment.
- Economic Contribution: The sector contributes ~7% to India’s GDP and constitutes around 3% of global trade.