Biofuels, Agriculture Link Key to India’s Auto Industry Growth: Gadkari

Pune, Aug 12 (KNN) At Pune’s World Biofuel Day celebrations hosted by Praj Industries, Union Transport Minister Nitin Gadkari outlined a bold vision for India’s automotive sector. 

He said the industry could become the largest in the world within the next five to six years if it fully embraces alternative fuels and strengthens links with agriculture, reported Indian Express. 

Currently valued at Rs 12 lakh crore, the automobile sector is India’s biggest contributor to the Goods and Services Tax (GST), provides employment to 4.5 crore people, and has already surpassed Japan to become the third-largest market globally. 

However, Gadkari acknowledged the challenge of pollution, noting that vehicles account for nearly 40 per cent of air pollution in the country, making the shift to clean, non-polluting fuel sources essential.

Gadkari introduced the “4 Es” framework—ecology, environment, economy, and ethics—emphasising that agriculture could play a pivotal role in the energy sector. 

If agricultural GDP rises from its current 12–14 per cent to match industry, India could cut its 85 per cent dependency on energy imports, directing more income to farmers.

Highlighting ethanol production from corn as an example, Gadkari noted that it has raised crop prices in Bihar, benefiting farmers. 

He proposed expanding biofuel production from grains, bamboo grown on wastelands, hydrogen, methanol, isobutanol, and diesel substitutes made from municipal waste, which could also be repurposed for highway construction.

Addressing concerns over funding such initiatives, Gadkari dismissed fears, pointing to the financial stability of bodies like the National Highways Authority of India (NHAI), whose AAA-rated bonds reflect the government’s strong capacity for large-scale infrastructure development.

(KNN Bureau)