NITI Aayog has launched a Report on “Automotive Industry. NITI Aayog’s report outlines several strategic fiscal and non-fiscal interventions aimed at enhancing India’s global competitiveness in the automotive sector. The interventions are structured across four categories of automotive components based on their complexity and manufacturing maturity i.e. Emerging & Complex, Conventional & Complex, Conventional & Simple and Emerging & Simple.
Fiscal Interventions
- Operational Expenditure (Opex) Support: To scale up manufacturing capabilities, with a focus on capital expenditure (Capex) for tooling, dies, and infrastructure.
- Skill Development: Initiatives to build a talent pipeline critical for sustaining growth.
- R&D, Government facilitated IP transfer and Branding: Providing incentives for research, development, international branding to improve product differentiation and empowering MSMEs through IP transfers.
- Cluster Development: Fostering collaboration between firms through common facilities such as R&D and testing centers to strengthen the supply chain.
Non-Fiscal Interventions
- Industry 4.0 Adoption: Encouraging the integration of digital technologies and enhanced manufacturing standards to improve efficiency.
- International Collaboration: Promoting joint ventures (JVs), foreign collaborations, and free trade agreements (FTAs) to expand global market access.
- Ease of Doing Business: Simplifying regulatory processes, worker hour flexibility, supplier discovery & development and improving business conditions for automotive firms.
