The government today said it is conducting a mid-term review of the Automotive Mission Plan 2006-16, which envisages India to become a global hub for design and manufacture of automobiles.
"As per the 12th Five-year plan, the ministry is reviewing target set up under the Automotive Mission Plan (AMP) 2006-16," Minister of Heavy Industries and Public
Enterprises Praful Patel said.
The extrapolation that have been drawn clearly indicate that the output of the automobile and auto component industry would reach USD 145 billion by 2016, accounting for more than 10 per cent of the India's GDP, he said.
The minister was speaking at the annual convention of the Association of Automotive Component Manufacturers Association of India (ACMA).
Secretary in the Department of Heavy Industry S Sundareshan said, "It is a mid-term review of AMP and we are running on track."
Stating that AMP has been a positive development for growth of the Indian auto industry, Patel said, "The growth has come. Every auto major across the world has recognised India as a place for manufacturin and have set up shops which I think is a good sign for the Indian economy".
Announced in 2006, the AMP 2006-16 had envisaged India to become an international hub for designing and manufacturing of automobiles and auto components with output reaching USD 145 billion and accounting for more than 10 per cent of the country' Gross Domestic Product (GDP).
It had also set a target of providing additional employment to 25 million people during the period.
The plan had also stated that to achieve the target, the industry would require an additional investment of USD 35-40 billion.
The bulk of investments are anticipated to come from expansion of capacities by existing players and by entry of global brands seeking to make India their manufacturing base.
The Indian automobile industry has grown over the years since the announcement of the AMP in 2006, when the overall production of vehicles rose from 9.7 million units to 20 million in 2011-12.