India To Become The Leading Automotive Market In Next 5 Years

India To Become The Leading Automotive Market Within 5 Years, According To Nitin Gadkari

Union Minister Nitin Gadkari has announced India’s aim to become the largest automobile market globally within five years. He highlighted that India’s automobile industry has grown significantly in the past decade. The sector expanded from Rs. 7.5 lakh crore in 2014 to Rs. 22 lakh crore at present.

Currently, the United States leads the global automobile industry with a size of ₹78 lakh crore. China follows with Rs. 47 lakh crore, while India stands at Rs. 22 lakh crore. Gadkari emphasised that India can overtake both with sustained growth.

The minister also highlighted progress in reducing logistics costs, once considered a barrier to competitiveness. Earlier, logistics costs were 16% of India’s GDP. Now, they have been brought down to 10%, with a target of single digits soon.

Massive investments in highways, expressways, and economic corridors have been credited for this improvement. Gadkari said efficient infrastructure would further strengthen manufacturing and trade. This, in turn, will help India’s automobile industry compete more effectively at the global level.

EICI-KPMG Report

The EICI-KPMG report titled Powering India’s Economy, Connecting Business and Markets, also underlined the express industry’s importance. The sector contributes USD 1 to 1.5 billion in GST annually. Additionally, it provides USD 650 million in customs revenue every year.

The report projected that the express industry will grow significantly by 2030. It is expected to double from USD 9 billion in FY25. By then, it could reach USD 18 to 22 billion, creating nearly 7.5 million jobs.

The study also revealed that domestic express services dominate the market with a 70% share. Surface Express contributes the largest portion within this segment. The international segment handled 19.5 million shipments weighing 152,300 tonnes in FY24.