India Becomes World’s Third-Largest Automobile Market: Nitin Gadkari
Industry value surges to Rs 22 lakh crore, overtakes Japan
Bilkul Bazaar | By Rafat Quadri
Gandhinagar
India’s automobile industry has emerged as the third-largest in the world by value, surpassing Japan, Union Road Transport and Highways Minister Nitin Gadkari announced on Thursday.
Speaking at the inauguration of ‘Prawas 5.0’, a multimodal transport exhibition organised by the Bus and Car Operators Confederation of India (BOCI) in Gandhinagar, Gadkari said the sector has expanded significantly—from Rs 14 lakh crore to Rs 22 lakh crore—since he assumed office.
From seventh to third: A major leap
Gadkari noted that India’s global ranking in the automobile sector has climbed from seventh to third, with only the United States and China ahead. He credited this growth to policy reforms, advancements in automobile engineering, and strong collaboration between the government and industry stakeholders.
A key pillar of India’s economy
The minister highlighted that the automobile industry has become a major economic driver, contributing approximately Rs 4.5 lakh crore annually through Central and State GST collections. Additionally, the sector has generated employment for around 4.5 crore people across the country.
“Transport plays a crucial role in economic development. Strong infrastructure boosts trade and industry, creating jobs and reducing poverty,” he said.
“When I took charge as a Minister, the size of this industry was Rs 14 lakh crore and our rank in the world was seventh. Today, we have moved forward, surpassing Japan, and our rank is third in the world. The size of this industry is Rs 22 lakh crore. The US ranks first and China ranks second,” he said.
Focus on clean and sustainable mobility
Outlining the government’s vision, Gadkari emphasised the importance of clean mobility guided by the principles of ethics, economy and ecology. He called for increased adoption of alternative fuels such as ethanol, methanol, bio-diesel, LNG, electricity and hydrogen.
“Public transport must embrace technologies that reduce pollution and minimise dependence on fossil fuels while remaining economically viable,” he added.
Driving future growth
Gadkari underlined four key factors essential for industrial growth: proven technology, availability of raw materials, economic viability, and effective marketing. He also urged vehicle manufacturers to continue innovating and investing in sustainable solutions.
Industry leaders gather at Prawas 5.0
The ‘Prawas 5.0’ event brought together transport operators, automobile manufacturers and industry experts to discuss the future of public transport and mobility in India. The inaugural session was attended by state ministers Jitu Vaghani and Kantilal Amrutiya, along with representatives from Uttarakhand, West Bengal, and BOCI President Prasanna Patwardhan.