Lok Sabha Question No. 244 (STARRED), answered on 2018-03-13
Subject: National Automotive Policy
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: SUDHEER GUPTA, GAJANAN CHANDRAKANT KIRTIKAR

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA STARRED QUESTION NO.244 TO BE ANSWERED ON 13.03.2018

National Automotive Policy

## 244.   SHRI SUDHEER GUPTA: SHRI GAJANAN KIRTIKAR:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a) whether the Government is in the process of formulating the National Automotive Policy;
- (b) if so, the details including the aims and objectives thereof along with the time by which it is likely to be finalised and brought into force;
- (c) whether the investment and production capacities have increased in the automobile industry under the Automotive Mission Plan;
- (d) if so, the details thereof along with the contribution of the automobile industry to the GDP of the country; and
- (e) the number of persons provided jobs under the above Plan along with the steps taken/being taken by the Government to create more jobs in the automobile industry?

## ANSWER

## MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI ANANT G. GEETE)

(a) to (e): A statement is laid on the Table of the House.

## STATEMENT

Statement referred to in reply to parts (a) to (e) of Lok Sabha Starred Question No. 244 for 13.03.2018 asked by Shri Sudheer Gupta Hon'ble MP & Shri Gajanan Kirtikar Hon'ble MP regarding 'National Automotive Policy'.

(a) & (b): Yes, Madam. The Department of Heavy Industry, Ministry of  Heavy Industries  & Public  Enterprises  has  finalised   a  draft   National Automotive Policy, which is  available in public  domain  (www.dhi.nic.in)  for  seeking  comments  from  all  stakeholders,  including  the Automobile Manufacturers (OEMs) and Industry Associations. The policy is to be finalised after analysing the comments/views received, following due procedure.

The  draft  National  Automotive  Policy  is  aimed  at  providing  a  long-term,  stable  and consistent  policy  regime  and  to  have  a  clear  technology-agnostic  roadmap  for  the  automotive industry, making India a globally competitive auto R&D and manufacturing hub and achieving the targeted objectives of green mobility. The policy covers the time horizon upto 2028.

(c) to (e): Automobile industry was delicensed in July 1991 with the announcement of the New Industrial  Policy.  The  norms  for  foreign  investment  and  import  of  technology  have  also  been progressively  liberalised  over  the  years  for  vehicle  manufacturers.  At  present,  100%  Foreign Direct Investment (FDI) is permissible under automatic route in this sector.

The  Indian  Automotive  industry  has  some  important  milestones  over  the  past  two decades. In terms of global rankings in manufacturing output, it is at present, second largest in two wheelers, eighth largest in commercial vehicles, sixth largest in passenger vehicles and the largest in three wheelers and tractors.

As reported by the Society for Indian Automobile Manufacturers (SIAM), the investment and production capacities have increased during the period of Automotive Mission Plan 2006-16, as mentioned below:

-  Investments exceeded Rs. 1,60,000 crore (US$35 billion).
-  Production increased to make the turnover of the industry INR 6,12,361 crore.

As  per  the  review  of  Automotive  Mission  Plan  2006-16,  the  automotive  industry's turnover is equivalent to 7.1% of the GDP.  About 22 million additional jobs were supported by automotive industry during the Automotive Mission Plan 2006-16.

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