New Delhi: Heavy Industries Minister Praful Patel Wednesday said the Indian automobile and auto component industry turnover will reach USD 145 billion by 2016 to account for more than 10 percent of gross domestic product (GDP).
"The output of the automobile and auto component industry would reach USD 145 billion by 2016, accounting for more than 10 percent of the country's GDP and in turn generate employment for more than a million people," Patel said in his address to the annual convention of Automotive Component Manufacturers Association of India (ACMA).
Patel advised the Indian auto component industry to invest more in research and development (R&D) for moving up the value chain and become globally competitive so as to increase exports through bilateral routes and regional free trade agreements (FTAs).
According to the minister, the growth of the industry has led the government to review targets set for the industry under the automotive mission plan 2006-16.
"As per the 12th Five Year Plan, the ministry is reviewing targets set up under the Automotive Mission Plan 2006-16," Patel said.
The auto component industry in India has witnessed robust growth over the last five years at 15 percent compounded annual growth rate.