‘Govt working to make auto sector no.1 in 5 years’
New Delhi: Union Minister Nitin Gadkari on Monday said the government aims to position India’s automobile industry as the world’s largest within the next five years. Speaking at the inauguration of the International Value Summit 2025, the Road Transport and Highways Minister underlined the sector’s significance, noting that it generates the highest GST revenue and supports millions of jobs.
“Within five years, our target is to make India’s automobile industry the number one in the world,” Gadkari stated, adding that all leading global auto companies now have a presence in India.
Recalling the sector’s growth during his tenure, Gadkari said its size has risen from Rs 14 lakh crore when he assumed charge to Rs 22 lakh crore today. In comparison, the US automobile industry stands at Rs 78 lakh crore, China at Rs 47 lakh crore, with India ranked third.
He emphasized that India, the fastest-growing economy, is on track to achieve Prime Minister Narendra Modi’s vision of becoming the world’s third-largest economy. Strong infrastructure, Gadkari stressed, will be key to realizing this ambition.
On road construction, he admitted shortcomings in the quality of detailed project reports (DPRs), which are crucial for design, survey, and execution. “The quality of DPRs in India is not satisfactory and needs urgent improvement,” he observed. Highlighting his “ethanol economy” vision, Gadkari said Indian farmers should be recognized not just as annadata (food providers) but also as urjadata (energy providers). By scaling biofuel production, he argued, India could cut its reliance on costly imports.
He also pointed to major strides in reducing logistics costs, a long-standing challenge for Indian competitiveness.
“Until recently, logistics costs were about 16 per cent of GDP. A recent IIM-IIT survey indicates we have reduced this to 10 per cent. By December, we expect to bring it down to 9 per cent,” he said. For comparison, logistics costs are around 8 per cent in China, and about 12 per cent in Europe and the US.
On green mobility, Gadkari highlighted India’s pioneering efforts in electric vehicles, hydrogen fuel, and alternative energy sources. “Hydrogen trucks are already on the roads, and pilot projects are underway across ten routes. Our goal is to lead the world in sustainable mobility,” he said.
He noted that companies including Tata Motors, Ashok Leyland, Reliance, and Indian Oil are collaborating with the government, which has allocated Rs 600 crore in grants to accelerate hydrogen infrastructure. Gadkari further mentioned ongoing trials of fuels like isobutanol and bio-bitumen, reiterating that sustainability and innovation would remain central to India’s transport strategy.
