Role of Auto Industry in Nation Building

The automobile industry is the main driver of macroeconomic growth and advancements in developing and developed countries. India was the 5th largest automaker in the world in terms of value and volume. It is growing at a fast rate which is giving rise to a number of automotive Tubular Battery manufacturers in Rajasthan.

The industry is contributing to many dimensions like creating economic development, generating government revenue, and fostering innovation and R & D. The expansion is leading to a multiplier effect for the economic development of India. 

Revenue Generation

Tax revenues are generated from usage-related levies, vehicle sales, business, and income taxes. Production and sales of automotive vehicles deliver import duties, local taxes, value-added, and excise in almost all states of the country including Rajasthan. It is a state where the automotive industry is growing rapidly. Also, the industry takes advantage of globalization through export and generates foreign exchange earnings. 

Economic Development

The contribution of the industry towards overall Indian GDP counts for 7.1 percent and 49 percent of the manufacturing GDP. It results in an annual turnover of around Rs7.5 lakh crores. Export value stands at Rs 3.5 lakh crores. Moreover, there is a connection between automotive input and FDI (foreign direct investment). The automotive battery manufacturing industry is becoming huge day by day adding to the numbers. This is resulting in an exponential rise in the number of Solar Battery Manufacturers in Rajasthan and other Indian states.

Development of People

Automobiles increase the quality of life of the users by offering safety, comfort, and mobility. The migration of businesses and people from urban to rural parts of the country is another advantage. In addition to that, the industry also provides job opportunities leading to skill development. Millions of jobs have been created by automotive factories and workstations. The industry is responsible for empowering skilled and experienced professionals to do their best and bring the best to the world. 

The Bottom Line

The automotive industry is benefitting the nation from various angles. It is fulfilling economic, industrial, and people development loopholes and taking the country to the next level. Several other areas are developing with the industry, for example, urbanization, globalization, infrastructure, etc. Automotive battery manufacturing is another segment that is growing hand in hand with the success of the industry. Auto components are manufactured in different parts of the country that are sold to developed countries, hence, resulting in increased export earnings.