Auto sector drive: Nitin Gadkari sets 5-year goal to make India no.1 globally, highlights Rs 22 lakh crore growth and logistics gains
Nitin Gadkari
on Tuesday said the government's aim is to make India's automobile industry the number one in the world within the next five years.
Launching a report prepared by The Express Industry Council of India (EICI) and KPMG, Gadkari said the outlook for the express industry is also promising.
'The size of Indian automobile industry is now Rs 22 lakh crore... my aim is to make India's automobile industry number one in the world in the next five years,' Gadkari said.
The minister added that when he took charge of the transport ministry in 2014, the size of the sector was Rs 7.5 lakh crore, which has now grown to Rs 22 lakh crore. Currently, the US automobile industry is valued at Rs 78 lakh crore, followed by China at Rs 47 lakh crore and India at Rs 22 lakh crore.
Gadkari said
Prime Minister Narendra Modi
's vision is to make India the world's third largest economy, and the logistics sector will be key in achieving this goal. He noted that until recently, logistics costs in India were about 16% of GDP.
'I want to share that, according to a joint IIM-IIT survey, we have brought this (logistics cost) down to 10 per cent. That is a major milestone and we are aiming to bring logistics cost down to single-digit soon,' Gadkari said.
The minister attributed the reduction in logistics costs to significant investments in expressways and economic corridors.
According to the report titled Powering India's Economy, Connecting Business and Markets, the express industry contributes $1-1.5 billion in GST and $650 million in customs revenue annually.
'The size of express industry sector is projected to double from $9 billion in FY25 to $18-22 billion by 2030, creating 6.5-7.5 million jobs,' it said.
The report also noted that the express industry has evolved from being a logistics facility to becoming an essential service provider. Domestic express accounts for nearly 70% of the total market, valued at $6.3-6.5 billion, with surface express contributing the largest share.
The international express segment, which holds about 30% share, handled 19.5 million shipments weighing around 1,52,300 tonnes in FY24, it added.
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