India’s industrial sector is rapidly evolving under the Aatmanirbharta (self-reliance) vision. The government aims to make India a global leader in innovation and manufacturing by 2047. This transformation focuses on sustainability, inclusivity, and technological advancement. The automobile sector is a key driver of this shift, particularly through electric vehicle (EV) adoption and green technology. Several government schemes and investments are accelerating this industrial renaissance.
Self-Reliance and Industrial Growth
The Aatmanirbhar Bharat initiative promotes domestic manufacturing and reduces import dependence. It targets an ecosystem where innovation and sustainability coexist. The Ministry of Heavy Industries (MHI) leads efforts to build a self-sufficient industrial base. The vision includes achieving net-zero emissions by 2070, driving cleaner technologies and green growth.
Automobile Sector and Electric Vehicles
The automobile industry is central to India’s industrial strategy. The Production-Linked Incentive (PLI) scheme for automobiles and auto components supports advanced automotive technology. With an outlay of Rs 25,938 crore, it encourages domestic manufacturing and innovation. Investments of over Rs 29,500 crore have been made, boosting sales and production. Electric vehicle adoption is growing fast. The Faster Adoption and Manufacturing of Electric Vehicles (FAME) schemes have laid the foundation for EV infrastructure and market expansion. The PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme launched in 2024 further supports electric two- and three-wheelers, e-buses, and e-trucks. EV sales surged from just over 2,000 units in 2015 to nearly 20 lakh units in 2025.
Infrastructure and Charging Networks
Urban transport is being revolutionised with the deployment of 10,900 e-buses in major cities. The government has invested Rs 2,000 crore to install over 70,000 fast chargers across highways and cities. This infrastructure supports the growing EV fleet and reduces pollution. The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEPCI) encourages investments exceeding Rs 4,150 crore to boost the EV supply chain.
Capital Goods and Strategic Materials
The capital goods sector has seen growth, with the MHI’s competitiveness scheme empowering micro, small, and medium enterprises. Heavy electrical industries more than doubled their output from Rs 1.59 lakh crore in 2015 to Rs 3.84 lakh crore in 2025. Indigenous production of rare earth magnets is expanding, crucial for EV motors and renewable energy technologies. This reduces reliance on imports and strengthens strategic autonomy.
Innovation and Future Prospects
Public-private partnerships and advanced research centres like the CAMRAS at the Indian Institute of Science, Bengaluru, fuel innovation in robotics, autonomous systems, and green technology. India aims to lead in defence, space exploration, and sustainable industrial development. These initiatives enhance energy security and position India as a global industrial powerhouse by 2047.
Questions for UPSC:
- Discuss in the light of India’s Aatmanirbhar Bharat initiative, how self-reliance in manufacturing can impact the country’s economic growth and global standing.
- Examine the role of electric vehicle policies such as the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in promoting sustainable urban transportation in India.
- With suitable examples, analyse the significance of indigenous production of strategic materials like rare earth magnets for India’s defence and renewable energy sectors.
- Critically discuss the challenges and opportunities of public-private partnerships in advancing technological innovation and industrial development in India.
