Confident India will emerge as the top manufacturing hub for EVs: Nitin Gadkari – The Economic Times

Clipped from: https://economictimes.indiatimes.com/small-biz/sme-sector/confident-india-will-emerge-as-the-top-manufacturing-hub-for-evs-nitin-gadkari/articleshow/79628259.cmsSynopsis

The minister added that besides the electric technology for automotive, the use of fuel ethanol, methanol biodiesel and bio CNG is being proactively promoted.

India is well poised to emerge as the world’s foremost manufacturing hub for a variety of electric vehicles, and this should happen in due course of time, believes Nitin Gadkari, Union Minister for MSME, Road, Transport and highways.

The minister added that besides the electric technology for automotive, the use of fuel ethanol, methanol biodiesel and bio CNG is being proactively promoted.

“The country is now focussing on the huge potential of biofuels and I am 100% confident that in due course of time, India will emerge as the number 1 manufacturing hub for electric cars, electric bikes, electric buses, electric two-wheelers,” Gadkari said at the inaugural session of TiE Global Summit 2020 held today.

“We are making ethanol from sugarcane, molasses and corns. The government has given permission for making it from the rice. Besides various new technologies, we are doing research on hydrogen fuel cells. In Public transport too, new research and innovations are being carried out. I believe these are the emerging sectors where a huge potential lies for the country,” Gadkari said.

Calling Covid both a crisis and an opportunity for Indian businesses, particularly for MSMEs, he said Indian automobile industry’s turnover now stands at Rs 4.5 lakh crore, and the sector’s ancillary industries are already doing excellent jobs in recovering from the ongoing pandemic ridden phase.

The performance of our 2-wheelers and 4-wheelers sectors is now back to pre-Covid levels and these segments are now working to increase their exports share, the minister added.

Betting big on rural India
Stressing on the huge business prospects of the Indian rural economy, the minister also said that the government is encouraging firms to look at rural India as a great business destination.

“Our focus is on the development of rural and tribal-based areas which offer great business potential. The MSME ministry is giving special priority to segments such as honey, solar charkhas and for making the denim,” Gadkari said, adding that the leading US company Levi is now using Indian- based denims.

“This shows that there exist several world-class products that the country can offer to global markets,” he added.

Stressing on the critical role being played by firms based out of rural India, the Union Minister added that village industries such as handlooms, handicrafts, Khadi Gram Udyog, among others are today generating Rs 80 thousand crore revenues, which need to be hiked up to Rs 5 lakh crore in the next few years.

The minister also emphasised on the critical role played by the country’s MSME sector. Calling the MSME segment ‘the backbone of the Indian economy’, he added that 30% of the country’s GDP is contributed by the MSME sector, and out of our total exports, 48% comes from this sector, which has so far created 11 crore jobs. “Now we have decided to increase the MSME sector’s 30% share 40 % and its exports share from the existing 48% to 60%… and we further want to create five crore new jobs out of this sector,” he added.

Reiterating the government’s commitment for helping the Covid-hit MSME sector, he further said that the government’s latest measures, including the new definitions of MSME sector and the Emergency Credit Line Guarantee Scheme (ECLGS), have been well received by small businesses.

He added that the government is planning to take up 22 new green highway road projects across the country.

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