India Aims to Become the World’s Leading Automobile Industry by 2028, Says Union Minister Nitin Gadkari
Union Minister Nitin Gadkari announced the government's ambition to position India as the leading automobile industry globally within five years during the International Value Summit 2025. He highlighted the sector's contribution to GST revenue and job creation, noting its growth from ₹14 lakh crore to ₹22 lakh crore. Comparing it with the U.S. and China, Gadkari stressed the need for improved infrastructure and detailed project reports. He also discussed India's progress in reducing logistics costs and advancing in electric and alternative fuels, advocating for farmers to be recognized as energy producers.
Theia Market Signal Identification - AI AssistedAt the International Value Summit 2025, Union Minister Nitin Gadkari unveiled an ambitious plan to elevate India's automobile industry to the top position globally within the next five years. Emphasizing the sector's importance, he noted its significant contribution to the government’s GST revenue and its role in generating millions of jobs. Since Gadkari took office, the industry has expanded remarkably from ₹14 lakh crore to ₹22 lakh crore, positioning India third behind the United States and China.
As the fastest-growing economy, India is on track to realize Prime Minister Narendra Modi's vision of becoming the world’s third-largest economy. However, Gadkari underscored that achieving this goal hinges on developing robust infrastructure, particularly in highway construction. He acknowledged the current inadequacies in the quality of detailed project reports (DPRs), which are crucial for effective project implementation, stressing the need for improvement in this area.
In an effort to diversify the economy, Gadkari highlighted the importance of transforming farmers into energy producers, coining them as "urjadata." He advocates for the expansion of the ethanol economy, which could reduce India's reliance on costly imports.
Furthermore, he reported significant progress in reducing logistics costs, a critical factor for enhancing competitiveness. From a previous high of 16% of GDP, logistics costs have recently dropped to 10%, with an ambitious target of reducing it further to 9% by December.
Comparatively, logistics costs in China stand at 8%, while Europe and the U.S. average around 12%. In discussions on clean mobility, Gadkari showcased India's leadership in electric vehicles and hydrogen fuel.
The government is investing in infrastructure, having allocated ₹600 crore in grants to advance hydrogen initiatives. Ongoing trials for innovative fuels, such as isobutanol and bio bitumen, promise to enhance sustainability within the industry.
Gadkari also highlighted the successful conversion of waste into resources, pointing to the utilization of over 80 lakh tonnes of waste from the Ghazipur landfill for road construction, significantly reducing its height. He called for global partnerships in areas like precast road construction and hydrogen transport systems, urging international delegates to contribute their technology and innovation to bolster India's transport strategy. With a strong revenue base and monetized roads, India is poised to lead the way in sustainable mobility, aligning economic growth with environmental stewardship.
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