India’s automotive and ancillary sector will be worth Rs 15 lakh crore and create over 19 million jobs

Mumbai, June 25 (IANS): Driven by government policies, India’s automotive and ancillary sector is likely to double in size to Rs 15 lakh crore, providing employment to over 19 million people by the end of 2023, a report said on Tuesday, adding that Indian corporates are wandering around the world with challenges related to excellent risk handling.

According to a report by ICICI Lombard in collaboration with Frost and Sullivan, the automotive and ancillary sector is expected to contribute 7.1% to the national GDP.

Currently, two-wheelers dominate the sector with 77% market share, followed by passenger cars with 18%.

India currently ranks second in the world for two-wheelers, seventh for commercial vehicles and sixth for passenger vehicles.

Government initiatives such as ‘Make in India’, continued investment in infrastructure and promotion of sustainable energy management have played a key role in strengthening the sector’s resilience.

Meanwhile, according to the report, despite global headwinds and increased risk exposure in certain sectors, Indian companies have demonstrated resilience and strategic progress, leading to improved risk management performance.

The Corporate India Risk Index (CIRI) 2023 shows an improvement in the risk index score from 63 in 2022 to 64 in 2023.

“The improvement in the score is a testament to the effective risk management practices adopted by Indian corporates in the face of global headwinds and challenges,” said Sandeep Goradia, director, corporate solutions, ICICI Lombard.

The manufacturing, metals, mining and new age sectors saw significant progress in their risk indicator scores.

“The steady improvement in the risk index score for the entire country, coupled with the fact that there are no sectors below the optimal risk index category, indicates a very positive outlook for Indian businesses,” said Aroop Zuthsi, global president and managing partner at Frost&Sullivan.

As mentioned in the report, ongoing digital transformation and AI integration across sectors have further improved operational efficiency and risk management practices.