The Indian government has said that it will announce the details of its second Automotive Mission Plan (AMP) in September this year. The plan includes details such as employment and investment targets to achieve by the year 2026.
Ambuj Sharma, additional secretary of the ministry of heavy industries in India, said that the plan aims for the auto industry to account for 10% of the nation’s gross domestic product (GDP) by the year 2026. He also added that the government intends on setting up nine centers of excellence and make them operational by the end of this year. The centers of excellence also include crash test sites.
In the first ever Automotive Mission Plan, targeted for the years 2006 through 2016, it was estimated that the automotive industry in India will contribute 10% of the total GDP. However, this target has not been achieved so far, with the sector accounting for a little over 7 per cent.
Ambuj Sharma said that the ministry is still to finalize many other targets such as investment and employment figures for the second Automotive Mission Plan.
When the first Automotive Mission Plan was announced in 2006, the ministry had hoped that India would become a global hub for the designing as well as manufacturing of automobiles and automobile components. It had also envisaged that the output would reach US$145 billion and account for over 10% of the gross domestic product in India. The Automotive Mission Plan also aimed to provide employment opportunities to 25 million individuals by the year 2016. As of now, the automobile industry employs round about 19 million people, both indirectly and directly.