Indian auto industry to create 6.5 crore additional jobs by 2026: AMP

The Automotive Mission Plan 2026 (AMP 2026), a joint effort between the Indian automotive industry and the government, is in its final stage of launch. First unveiled at the SIAM convention in September last year, AMP2026 is set to give a firm push to the government’s Make in India initiative.

AMP 2026 envisions that by 2026 the Indian auto industry will be among the top three in the world in terms of  engineering, manufacturing and export of vehicles as well as auto components and will encompass safe, efficient and environment-friendly conditions for affordable mobility of people and transportation of goods in India.

To provide a clearer vision of the 10-year AMP plan, the minister of state for Heavy Industries and Public Enterprises, GM Siddeshwara has outlined the objectives, which include:

1.  The Indian automotive industry to be a top job creator with 6.5 crore (65 million) additional jobs.

At present, the Indian auto industry employs a total of 31 million people, two million directly and 29 million indirectly.  

2.  The Indian auto industry to be the prime mover of the manufacturing sector and 'Make in India' programme.
 

In FY2015, the auto industry contributed 7.1% of India's GDP, 49% of the manufacturing GDP, 27% of industrial GDP and 7% of overallexports. For FY2015, the industry recorded a turnover of Rs 556,555 crore (US$ 88.10 billion).

3.  The auto industry will aim to increase exports of vehicles by 5 times and components by 7.5 times.

4.  For the success of AMP 2026, there is a need for a coordinated and stable policy regime for the automotive sector. 

5.  Specific interventions are envisaged to sustain and improve manufacturing competitiveness and to address challenges of the environment and safety.

AMP 2026 is targeting a growth 3.5 to 4 times in value from its current output of around Rs 464,000 crore a year before the end of the current Mission Plan period of 2016 to about Rs 16,16,000 – Rs 18,88,500 crore by 2026. This will be based on a growth of 5.8 percent with an average GDP growth of 7.5 percent during this period.

AMP 2006-16 achieved about 70 percent of its targets a year before its closure. Some of its key achievements are an incremental employment creation of 25 million jobs over the last 10 years. India has attracted a significant quantum of investments from global and local OEMs as well as component manufacturers exceeding the target of Rs 157,500 crore.

Also read: AMP 2006-2016 falls short of some targets but overall it vrooms along