Latest Car News in India

Wednesday, July 13, 2011

By Pranjal Gera

Rs. 2,50,000 crore investment expected from Auto Sector in 10 years

The Indian auto industry is expected to invest Rs. 2,50,000 crore in the coming 10 years, said the Government on Monday. Also the car production is expected to reach 10 million cars annually by that time.

Praful Patel, Minister for Heavy Industries and Public Enterprises said that it is expected that in the coming 10 years, the Indian Auto Industry will invest Rs. 2,50,000 crore. He said that the investment will create 20 million jobs across the sector. He added that he wants to see a sustainable and orderly growth of the sector. He also added that the domestic production of the cars is expected to reach 10 millions by 2020 as compared to the present numbers of 2.5 millions. Society of Indian Automobile Manufactures reported earlier that the Indian auto industry occupied the leading position in the world over powering the USA which grew at the rate of 14.4 per cent in the January to June period.

Patel after a meeting with top officials of the various companies said that the current turnover of the auto industry is US $ 75 Billion and the exports are worth US $ 11 Billion. He added that the auto sector is the major contributor in the manufacturing sector in India and contributes close to 21 per cent in the economy. He added that in order to tackle issues like taxation, labour unrest, land aquisition and skill developments, the government would set up task forces. Patel said about the extension of the DEPB Scheme that the government has taken it into it consideration and it will look further into the matter.

Duty Entitlement Passbook (DEPB) Scheme by the government for the exporters was due to expire on June 30, but the government extended it to September 30. However he added that the continuation of the scheme requires larger policy framework as the scheme applies to other sectors also and not only to the auto sector.

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