Standing as one of the main pillars of support to growing India’s economy, the current automotive industry in India is a key driver of growth.
With the liberalization of India along with conscious policy interventions of the government, the automobile market has created a vibrant and competitive market in the last few years.
Currently, India’s automotive market shares 7.1 percent of India’s GDP and employs a workforce of around 37 million.
Apart from this, the production of transport equipment further adds up to 10 to 12 percent of the gross value added (GVA) within India’s manufacturing sector.
So, any further decline in the market either due to natural or man-made reasons can cause a major impact on India’s economic outcomes as employment will also get hit when vehicle sales fall, thereby affecting 37 million direct and indirect job holders which will stimulate job creation in other industries.