Union minister Nitin Gadkari said that the government is working towards making India a global automobile manufacturing hub and the domestic industry is expected to be worth Rs 15 lakh crore in the near term.
According to a report of PTI, Virtually inaugurating Tata Motor's vehicle scrapping facility in Jaipur, Gadkari said the automobile sector currently contributes to 7.1 per cent of the nation's GDP with the industry size at around Rs 7.8 lakh crore.
The auto sector gives direct and indirect employment to around 4 crore people and this number is expected to grow to 5 crore by 2025. I am working with a target to make India number one global automobile manufacturing hub and to take its size to Rs 15 lakh crore in the near future, he noted.
It is estimated that the automotive demand generated by the scrapping policy will lead to additional GST revenue of Rs 40,000 crore to the government and the raw material cost for new cars will go down by 30 per cent, he stated.
About 50-60 scrapping centres can bring down demand for imports of steel scrap making India self reliant," the minister said. He added that vehicle scrapping would help in establishing an organised industry thereby enabling new employment opportunities.
My aim is to develop a scrapping centre within a reach of 150 kilometres from all the city centres, Gadkari said, adding that India could become a scrapping hub for the entire South East Asia. We can establish automobile clusters in the port areas ultimately, it is a win-win situation for all stakeholders, Gadkari said.