Auto sector to contribute $ 145 bln to GDP by 2016

New Delhi, Jan 29 (UNI) With a mission to contribute a 10 per cent growth and 145 billion dollars to the country's GDP by 2016, the government in collaboration with the Indian auto industry today released Automotive Mission Plan (AMP) 2006-2016.

The mission plan has been prepared by the Ministry of Heavy Industries and Public Enterprises with the Indian automotive industry wherein the Minister of Heavy Industries and Public Enterprises Sontosh Mohan Dev promulgated the blue print here.

''The AMP envisages an increase in the country's turnover from 35 billion dollars to 145 billion dollars accounting for ten per cent of GDP and providing employment to 25 million people by 2016,'' said Mr Dev.

The current export of the automative sector is about 4.1 billion dollar which needs to be increased to a minimum of 35 billion dollars to make the country a substantial player in the global market.

This should require an investment of about 40 billion dollar during this period (2006-16), the minister added.

Mr Dev said India will emerge as a major centre for the automotive industry and complimented the Indian auto industry for the steps taken to improve the competitiveness of Indian brands.

''Government was in dialogue with the industry and academia for some time to identify growth areas in auto industry to address both domestic and global market. The measures like excise duty concession, reduction in import duty and raw materials and infrastructural development were addressed during the last five years which has resulted in phenomenal growth in the sector,'' he said.

The minister said the Government will be a partner in the development of the Indian auto industry.

UNI