The Automotive Mission Plan (AMP) 2016-26 has recently been featured in news reports. This plan is a collective endeavor by the Indian government and the Indian automotive industry, intending to establish a roadmap for the industry’s progression. The AMP outlines expectations for the future of vehicles, auto components, and the tractor industry over the coming decade, taking into account aspects like size, India’s GDP contribution, and global technological competitiveness.
The predecessor of this plan, AMP (2006-16), was met with success. This previous plan positioned India not only as a hub for automobile production but also as a center for design and development.
Vision 3/12/65
The goal of the Indian automotive industry is to rank among the world’s top three in terms of engineering, manufacturing, and vehicle and auto components export. The industry aims to contribute over 12% to India’s GDP and generate an additional 65 million jobs.
Objectives of the AMP 2016-26
The AMP (2016-26) is designed to advance several key goals.
Manufacturing Boost
One primary objective of the AMP is to allow the Indian automotive industry to fuel the “Make in India” program. The automotive sector is expected to contribute over 12% to the country’s GDP and compose more than 40% of the manufacturing industry.
It will promote the growth of Micro, Small, and Medium industries across various sectors.
Employment Opportunities
The AMP also intends to make the Indian automotive industry a pivotal part of the “Skill India” initiative. The goal is for the industry to become one of the largest job sources in the Indian economy.
Mobility Enhancement
The program also aims to improve universal mobility. It encourages environmental protection and affordability while offering consumers a wide range of mobility options.
Increasing Exports
The AMP also has explicit plans to boost net exports from the Indian automotive industry, positioning India as one of the premier automotive export centers globally.
Electric Vehicle Innovation
The AMP envisions advancements in new technologies, including electric vehicles and associated infrastructure, factoring in upcoming fuel-efficiency regulations.
Statistics of Indian Automotive Industry
| Year | GDP Contribution | % of Manufacturing Sector | Number of Jobs Created |
|---|---|---|---|
| 2017 | 7% | 25% | 35 million |
| 2018 | 7.5% | 27% | 37 million |
| 2019 | 8% | 30% | 40 million |
| 2020 | 7% | 28% | 38 million |
Anticipated Impact of the AMP on the Automotive Sector
Given the recent downturn in the automobile sector, a stringent implementation of the AMP is predicted to enhance the overall industry’s condition.
Despite the current challenges, the AMP 2016-26 carries significant potential to reshape the Indian automotive industry, paving the way for a more technologically advanced, economically beneficial, and globally competitive industry.
