News:Minister of Heavy Industries & Public Enterprises has informed Lok Sabha about the Automotive Mission Plan(2016-26).
Facts:
About the Automotive Mission Plan 2016-2026:
- Automotive Mission Plan(AMP) 2016-2026 is the collective vision of the Government of India and Indian Automotive Industry.
- The plan is a follow up to the AMP(2006-16) which has been successful in making India not only an automobile producing hub but also a designing and development hub.
- The plan provides vision on where vehicles, auto components and tractor industry should reach over the next 10 years in terms of size, contribution to India’s GDP and global footprint in technology, competitiveness and capabilities.
- It aims at bringing the Indian Automotive Industry among the top three of the world in engineering, manufacture and exports of vehicles & components; growing in value to over 12% of India’s GDP and generating an additional 65 million jobs.
Objectives of the Automotive mission plan:
- To propel the Indian Automotive industry to become the engine of the “Make in India” programme.
- To make the Indian Automotive Industry a significant contributor to the “Skill India” programme.
- Promote safe, efficient and comfortable mobility for every person in the country, with an eye on environmental protection and affordability through both public and personal transport options.
- To seek an increase of net exports of the Indian Automotive industry several fold.
Significance of the plan:
- The Automotive mission plan is needed at this time as Indian automotive industry is going through a demand crisis.
- The sector has been impacted due to NBFCs crisis and the liquidity squeeze in the market.
- The decline in customer confidence is the other factor that is leading to a continuous slide in sales of passenger cars.
- Further,a simultaneous increase in ownership costs and an overall weak economy affecting demand has also been hurting demand.
- Hence,the plan is expected to improve the overall scenario in the automotive industry.
