India has a new aspiring middle class of 250 million people who will fuel growth, also in the mobility sector, Prime Minister Narendra Modi said in his address at the inaugural edition of the Bharat Mobility Show, adding that automobile and auto component makers have a big role to play in realising their needs and in the country becoming a powerhouse on the global stage going ahead.

Holding that India will surely become the third largest economy in the world in his third term, the Prime Minister, said there are immense opportunities for stakeholders to grow business. “India is on the move and is moving fast”, the Prime Minister said, adding it is the beginning of the golden period for the mobility sector.

In the last 10 years, Modi said, 25 crore (250 million) people have moved out of poverty. “And of their dreams, one is related to your sector (to buy a vehicle). There is a neo middle class in India. They have their own aspirations and they will take the Indian mobility sector to new heights”, Modi said, pointing out that the number of cars sold in India rose from 12 crores to more than 21 crores from the 10 years before 2014 to after 2014, while the number of electric cars sold in India rose from 2 thousand per year 10 years ago to 12 lakh per year today.

He further added that in the last 10 years, the number of passenger vehicles saw an increase of 60% while two-wheelers increased by 70%. According to the latest statistics, the Prime Minister informed that car sales in January have broken all previous records. “Mobility sector is witnessing an unprecedented atmosphere in the country and you must capitalize on it”, he said.

The government is making new policies keeping in mind the needs of the future, he said. Referring to the Union Budget presented yesterday, Modi informed in 2014 India’s capital expenditure was less than 2 lakh crore, which has risen to more than 11 lakh crore today. This has brought many opportunities for India’s mobility sector, he said.

Timely completion of projects, the PM National Gati Shakti Masterplan promoting integrated transport in the country, the National Logistics Policy, the transformative impact of the Goods and Services Tax (GST) in accelerating trade and abolishing check posts at state borders has helped the industry by making it easier to do business in the country, he said. “India is now on the threshold of becoming a global economic powerhouse, with the auto and automotive component industry playing a significant role,” Modi stated. The Rs 25,000 crore production linked incentive scheme for the auto and auto component sector announced by the government, the Rs 18,000 crore PLI for ACC, Rs 10,000 crore FAME Initiative have all been designed to support growth in the industry. He informed that a fund allocation of Rs 1 lakh crore has been made in this year’s budget to encourage research and innovation and also mentioned the decision to further expand the tax exemptions given to startups. “These decisions will create new opportunities in the mobility sector”, Modi said.

The Prime Minister urged auto industry stakeholders to explore research avenues that utilize India’s abundant raw materials for battery manufacturing and delve into areas such as green hydrogen and ethanol. He said, “Why not conduct research to manufacture batteries using raw materials available in India? The auto sector should also explore research in green hydrogen and ethanol.”The Prime Minister also asked the tyre industry to reduce import dependence for rubber with the cooperation of farmers.

Referring to the tagline of the expo – Beyond Boundaries – Modi said it showcases the spirit of India. “Today we want to break old barriers and bring the whole world together. We want to expand India’s role in the global supply chain. There is a sky of possibilities in front of the Indian Auto Industry”, Modi said.

(You can now subscribe to our ETMarkets WhatsApp channel)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price


Source link