Auto sector drive: Nitin Gadkari sets 5-year goal to make India no.1 globally, highlights Rs 22 lakh crore growth and logistics gains

Union Minister Nitin Gadkari on Tuesday mentioned the federal government’s intention is to make India’s car business the primary on the planet throughout the subsequent 5 years.Launching a report ready by The Express Industry Council of India (EICI) and KPMG, Gadkari mentioned the outlook for the categorical business can also be 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 mentioned.(*22*)The minister added that when he took cost of the transport ministry in 2014, the dimensions of the sector was Rs 7.5 lakh crore, which has now grown to Rs 22 lakh crore. Currently, the US car business is valued at Rs 78 lakh crore, adopted by China at Rs 47 lakh crore and India at Rs 22 lakh crore.Gadkari mentioned Prime Minister Narendra Modi’s imaginative and prescient is to make India the world’s third largest financial system, and the logistics sector will likely be key in reaching this goal. He famous that till not too long ago, logistics prices in India had been 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 mentioned.The minister attributed the discount in logistics prices to vital investments in expressways and financial corridors.According to the report titled Powering India’s Economy, Connecting Business and Markets, the categorical business contributes $1-1.5 billion in GST and $650 million in customs income yearly.“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 mentioned.The report additionally famous that the categorical business has advanced from being a logistics facility to turning into a necessary service supplier. Domestic categorical accounts for almost 70% of the full market, valued at $6.3-6.5 billion, with floor categorical contributing the biggest share.The worldwide categorical phase, which holds about 30% share, dealt with 19.5 million shipments weighing round 1,52,300 tonnes in FY24, it added.