The Union Minister of Commerce and Industry has urged India’s automotive industry to increase local manufacturing, boost exports and compete in global markets. Speaking at the 66th SIAM Annual Convention, the Minister emphasised that the sector will be crucial to India’s economic growth and that companies must prepare to serve customers worldwide, not just domestically.
What the Minister said
The Minister highlighted that nine trade agreements have been completed in the last four and a half years, covering economies with a combined GDP of around $60 trillion. The India-EU agreement, described as the “mother of all deals”, is expected to be operational by March next year. The UK agreement is already live, offering 100 per cent duty-free access for most auto components.
On global standards, the Minister cautioned that Indian-made vehicles should not be of lower quality than those sold internationally. He cited instances where vehicles designed in India were not being exported because their designs were considered inferior to global models. Companies must ensure that products manufactured here meet world-class standards.
The Minister outlined four areas the government wants to secure for the mobility sector: critical minerals like rare earths and magnets; technology and component partnerships; energy self-sufficiency including battery development; and expanded global markets. He mentioned a Research and Development Innovation Fund of Rs 1 lakh crore to support companies investing in innovation.
On employment and technology, the Minister said artificial intelligence would improve efficiency and competitiveness while creating new roles. Though job titles may change, overall employment will expand. He stressed that resilience comes from partnerships, technology collaboration, research, skill development and access to diverse global markets.
The Minister noted India exported around one million cars last year, with companies like Maruti, Tata Motors and Mahindra achieving strong growth and global recognition, particularly in electric vehicles.
What this means for you
If you work in India’s automotive industry, the government is signalling support for expansion and technology investment through trade deals and infrastructure support. Domestic car buyers may see more globally competitive vehicles designed and made in India. Workers should expect the sector to grow, though skills in new technologies and electric vehicles will become increasingly valuable. The push for local manufacturing of components and critical minerals could create job opportunities across the supply chain.