The government unveiled on Monday an ambitious 10-year plan for India to emerge as a destination of choice for the automobile sector.
The Automotive Mission Plan (AMP) aims for a sectoral output of $145 billion accounting for more than 10 per cent of the gross domestic product (GDP) and providing additional employment to 25 million people by 2016.
" In cooperation with the industry, the AMP has been finalised as a document to be followed by the government and the industry to make India a global player. This should require investment of around $40 billion which the industry would like to ensure," Heavy Industries Minister Santosh Mohan Dev told reporters shortly after Prime Minister Manmohan Singh released the plan.
The minister said the future challenges for the Indian automobiles industry in achieving the targets defined in the plan would primarily consist of developing a supply base in terms of technical and human capabilities, achieving economies of scale and lowering manufacturing costs.
At the same time, there is a need to stimulate domestic demand and exploiting export and international business opportunities.
Dev supported Tata Motors' car plant at Singur in West Bengal and said problems associated with land acquisition would be sorted out.
"So far as Singur is concerned I am in support of the Tatas since West Bengal needs industrial development. There have been problems of land acquisition in Singur, but whenever there is development there will be some sort of a problem. We would like to sort it out," he said.
Releasing the mission plan, the Prime Minister said India would emerge as a major centre for the automotive industry and complimented the industry for the steps taken to improve the competitiveness of Indian brands.
In the light of growing global concerns about climate change, he urged the industry to invest in energy-efficient and environment-friendly technologies.
Singh said the developed countries must accept their due burden as they have been the biggest polluters. Developing countries cannot be asked to taken on the obligations of developed countries and must be helped in meeting the challenge of climate change, the minister said.