Make in India’s 10th Anniversary: Transforming India into a Global Mobility Hub

1. Make in India, For the World: Investment Opportunities in India’s Mobility Sector This year marks the 10th year anniversary of make in India initiative, a pivotal step in India’s nation building step. It aimed to position India as global manufacturing hub by facilitating investments, promoting advanced manufacturing technologies, and enhancing domestic skill development across various sectors. India's mobility sector is on the cusp of a revolutionary transformation, driven by a synergy of government initiatives, private sector innovation, and growing consumer demand. With the Make in India initiative at its core, India is actively positioning itself as a global hub for advanced mobility technologies that cater to domestic and international markets. India, one of the world’s fastest-growing economies, continues its upward trajectory of growth, aiming to achieve high middle-income status by 2047. The country is expected to become the third largest economy by the end of this decade and aims to reach a USD 30 Trillion economy by 2047 under Hon’ble Prime minister Shri Narendra Modi’s Amrit Kaal Vision. In this pursuit, India has become a top investment destination globally, with FDI inflows exceeding USD 1 Trillion between April 2000 and September 2024. India’s resilient automotive market is catering to one of the largest growing economies of the world, ranging from traditional automotive manufacturing to cutting-edge electric vehicles (EVs). One of the Key drivers for this global shift is Competitive Cost of Manufacturing complimented by various skill development initiatives taken up by the center and the state government. This has enabled us to also develop an extensive auto component value chain domestically which is not only catering to consumer demand in India but also empowering us to be the export hub to middle eastern, south Asian, and African markets. In addition to that companies like Honda and Suzuki are exporting to developed economies of Europe & Japan. Further strengthening our position of India in global automotive value chain. Companies from all over the world are using India as strategic sourcing hub which is evident from USD 21.8 Bn worth of auto component exports. The Government of India has allowed 100% FDI for the automotive sector under automatic route which has not only enabled manufacturing facilities in India but also use India as R&D center outside their home country. Demand and supply side policies from government such as PLI, PM E-DRIVE, and SPMEPCI not only bringing the cost of manufacturing for the industry but also incentivizing consumers to adopt sustainable mobility solutions. In addition to the initiatives of central government, state governments are also playing a pivotal role to make India competitive destination for foreign investment, certain states like Maharashtra, Andhra Pradesh & Telangana are offering the fixed capital subsidy based on

2. investment amount, states like Haryana have dedicated EV policy which are giving additional incentives for manufacturing EV & its components. Multiple states are providing subsidized land and water rates, State GST & stamp duty reimbursement. India's rapidly growing economy has fueled a surge in vehicular penetration, presenting significant opportunities for Original Equipment Manufacturers (OEMs). Despite being the world’s third-largest automotive market, India offers immense potential for growth, driven by domestic demand and its strategic position as an export hub for Asia. Prominent OEMs, such as Maruti Suzuki and Hyundai Motors, capitalize on this by exporting to regions like the Middle East, Africa, and beyond. Indian OEMs also dominate the two-wheeler market in Latin America and Africa through their domestic facilities. Furthermore, India is becoming a critical player in the global automotive supply chain, supported by dedicated auto clusters that enable auto component companies to cater to rising demand. With the exponential growth of Electric Vehicles (EVs) amid environmental concerns, India is positioning itself as a global hub for cell manufacturing. Government initiatives, such as the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells, aim to enhance domestic manufacturing capabilities and reduce reliance on imports. Additionally, proposed exemptions on customs duties for capital goods and raw materials further bolster India’s appeal as a manufacturing hub. To leverage India’s engineering talent and navigate rapid changes with emerging trends such as autonomous driving, connected car technology, safety etc., leading auto OEMs and auto components makers have invested heavily in innovation by establishing Global Capability centers (GCCs). Major auto giants, including Volvo and Daimler have established their R&D hubs in India. India’s mobility sector is a testament to the country’s ambition and capability to lead on a global scale. With supportive policies, state-level incentives, and a rapidly growing market, India is poised to become a global hub for sustainable and innovative mobility solutions. By investing in this sector, stakeholders not only gain access to a lucrative market but also contribute to shaping the future of mobility.