Union Road Transport and Highways Minister Nitin Gadkari said India’s automobile industry has the potential to become the largest in the world, highlighting the sector’s strong growth, rising exports and improving vehicle safety standards.
Speaking about the growth of the automobile sector, Gadkari said India is currently the world’s largest two-wheeler market and the second-largest three-wheeler market. The automobile industry contributes nearly 15 per cent of India’s total GST revenue and has registered an annual growth of around 11 per cent.
He further said auto exports recorded a growth of nearly 24 per cent in FY26, reflecting the growing global demand for vehicles manufactured in India. India’s auto industry can become No. 1 globally’
Gadkari said the Indian automobile industry has significant potential to become the number one industry in the world. He attributed the growing overseas demand for Indian vehicles to improvements in quality and technology.
The minister also highlighted India’s Bharat New Car Assessment Programme (Bharat NCAP), under which 35 vehicle models have been certified so far. He said Bharat NCAP is substantially cheaper than the Global NCAP system. While the cost of testing under Global NCAP is around Rs 2.5 crore per model, Bharat NCAP costs approximately Rs 65 lakh per model.
Gadkari termed India’s car safety rating system a “success story” and said the government will launch the second version of the country’s auto rating system.
Government plans points-based system for driving licences
Road safety remained a key focus of Gadkari’s remarks, with the minister stressing the need to reduce road accidents “at any cost”.
India witnesses around five lakh road accidents every year, and Gadkari said the government is working to bring down this number by examining the entire chain of factors involved in crashes.
The ministry is also planning to introduce a graded points system for driving licences and vehicle registrations to monitor and discourage unsafe driving behaviour.
Under the proposed system, drivers displaying repeated instances of misbehaviour or unsafe driving could face suspension of their driving licences.
At the same time, people with good driving records could be rewarded through benefits such as lower insurance costs and other incentives.
New technology to be used to reduce road accidents
Gadkari said the government plans to evaluate the entire chain of events leading to road crashes and deploy new technologies developed both in India and globally to improve road safety.
The proposed points-based mechanism is aimed at encouraging responsible driving while discouraging behaviour that increases the risk of accidents.
With the automobile sector witnessing strong domestic growth and rising exports, Gadkari said improving vehicle quality, strengthening safety standards and promoting responsible driving will be crucial for India to realise its ambition of becoming the world’s leading automobile industry.
2,000 cr allocation specifically dedicated to scaling up public EV charging infrastructure
Union Minister for Heavy Industries HD Kumaraswamy highlights a massive 2,000 crore allocation specifically dedicated to scaling up public EV charging infrastructure nationwide under the PM e-Drive Scheme.
