New Delhi, Feb 28 (KNN) Union Minister Nitin Gadkari said on Tuesday that the domestic automobile industry is likely to become Rs 15 lakh crore worth in the near term.

He said the government is working towards making India a global automobile manufacturing hub.

Virtually inaugurating Tata Motor's vehicle scrapping facility in Jaipur, the Union Minister said the automobile sector currently contributes to 7.1 per cent of the nation's GDP with the industry size at around Rs 7.8 lakh crore.

Currently the auto sector gives direct and indirect employment to around 4 crore people and this number is expected to grow to 5 crore by 2025, he said.

“I am working with a target to make India number one global automobile manufacturing hub and to take its size to Rs 15 lakh crore in the near future,” he noted.

The Minister further noted that the scrappage policy enables removal of older and unfit vehicles and introduction of new lesser polluting vehicles in a phased manner.

“It is estimated that the automotive demand generated by the scrapping policy will lead to additional GST revenue of Rs 40,000 crore to the government and the raw material cost for new cars will go down by 30 per cent,” he stated.

He noted that the country currently imports 8 million tonnes of scrapped steel annually.  (KNN Bureau)