NITI Aayog Releases Automotive Industry GVC Report
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Strategic Categorization: Components are now structurally classified into four categories (Emerging and Complex, Conventional and Complex, Conventional and Simple, Emerging and Simple) to apply targeted fiscal and non-fiscal interventions.
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Export and Production Targets: The benchmark for auto component exports is officially targeted to triple from USD 20 billion to USD 60 billion by 2030, shifting focus from pure domestic fulfillment to global integration.
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Focus on High-Value Segments: Policy support pivots from basic manufacturing to high-precision segments like engine components, electric vehicle batteries, and automated systems, where India currently holds only a 2 to 4 percent global share.
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Cost Competitiveness Measures: The roadmap introduces specific operational expenditure support, R and D incentives, and intellectual property transfer mechanisms to offset India's existing 10 percent cost disadvantage against global competitors.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)With reference to the NITI Aayog report 'Automotive Industry: Powering India's Participation in Global Value Chains' (2025), which of the following statements is/are correct? 1. India aims to increase its share in the globally traded auto components market from 3 percent to 8 percent by 2030. 2. The automotive sector currently accounts for more than half of India's total national GDP.