The government is working to make India’s automobile industry number one in the world within five years, Union Minister Nitin Gadkari said on Monday.
Photograph: Reuters
Inaugurating the ‘International Value Summit 2025’, Gadkari said the automobile sector pays maximum GST revenue to the government and generates employment opportunities.
“Within five years, our target is to make India’s automobile industry the number 1 in the world,” the road transport and highways minister said.
Gadkari pointed out that all big automobile companies are present in the country.
“When I took charge as transport minister, the size of the Indian automobile industry was Rs 14 lakh crore.
“The size of Indian automobile industry now is Rs 22 lakh crore,” Gadkari said.
Presently, the size of the US automobile industry is Rs 78 lakh crore, followed by China (Rs 47 lakh crore) and India (Rs 22 lakh crore).
The minister said India is the fastest-growing economy in the world and the dream of Prime Minister Narendra Modi is to make India the third-largest economy.
“We need to develop good infrastructure for achieving this target,” he said.
Referring to the quality of highways construction, Gadkari said quality of detailed project reports (DPRs) made in India are not good.
A DPR, which includes surveys, investigations and designs, is essential to the project implementation process.
Talking about ethanol economy, Gadkari said farmers should not only be recognised as ‘annadata’ or food producers, but also as ‘urjadata’, or energy producers.
He expressed confidence that India’s cost of logistics would come down to 9 per cent by the end of December.
“Until recently, logistics cost in India was about 16 per cent of the GDP. But according to a latest joint IIM-IIT survey, we have brought this down to 10 per cent.
“That is a major milestone and we’re aiming for single digits soon,” Gadkari said.
According to him, logistics cost in China’s is 8 per cent, while that of Europe and America is 12 per cent.
On clean mobility, the minister highlighted India’s leadership in electric vehicles, hydrogen fuel, and alternative fuels.
“We have already launched hydrogen trucks, and pilot projects are underway across ten routes.
“Our aim is to lead the world in green mobility,” he stated.
With support from companies such as Tata Motors, Ashok Leyland, Reliance, and Indian Oil, Gadkari said the government has provided Rs 600 crore in grants to fast-track hydrogen infrastructure.
He also noted advancements in new fuel options like isobutanol and bio-bitumen, which are currently under active trials.
Gadkari noted that sustainability remained a central theme of the address.
“We are converting waste into wealth. Over 80 lakh tonnes of waste from Ghazipur landfill have been used in road construction.
“We have reduced the height of the mountain by seven metres already,” the minister said.
He pointed to successful trials of bio-bitumen made from rice straw, which has shown better performance than petroleum-based bitumen and helps reduce stubble burning.
Gadkari also called for global partnerships in key innovation areas, including precast road construction, tunnel engineering, hydrogen transport systems, and circular economy solutions.
“We do not have a resource problem. Our roads are monetised, and our revenue is strong.
“What we need is your innovation, your technology, and your cooperation,” he urged international delegates.
