<p class="title">Auto manufacturing will have to grow by 14 per cent if India has to achieve the USD 5 trillion economy target, Mahindra and Mahindra Managing Director Pawan Goenka said on Monday.</p>.<p class="bodytext">India has set an ambitious target of USD 5 trillion in the next five years and 12 per cent of it is expected to be contributed by the manufacturing sector.</p>.<p class="bodytext">"USD 5 trillion economy target by 2025-26 means a CAGR of 8.5 per cent. Within that, the target of manufacturing is USD 1 trillion, which means 12 per cent from manufacturing and within manufacturing, automotive plays a significant role. If manufacturing has to grow 12-13 per cent auto must grow by 14 per cent," Goenka said during a panel discussion at the India economic conclave 2019.</p>.<p class="bodytext">He further said currently the auto industry contributes 7 per cent of GDP which is good but when compared with the other major auto producing countries, which are all in double digits, the Indian industry's share is still lower.</p>.<p class="bodytext">"Auto is only 4 per cent of exports in India as compared to auto manufacturing countries like Thailand, Germany, Korea, and Japan which are more than 10 per cent," he added.</p>.<p class="bodytext">"This year happens to be a bad year but last 10 years what we did if you repeat the same thing, we will not achieve and this number will be just a number. Secondly, export will play an important part but you will have to look at domestic more while we can improve exports. Engineering services also can be made strong," he added.</p>
<p class="title">Auto manufacturing will have to grow by 14 per cent if India has to achieve the USD 5 trillion economy target, Mahindra and Mahindra Managing Director Pawan Goenka said on Monday.</p>.<p class="bodytext">India has set an ambitious target of USD 5 trillion in the next five years and 12 per cent of it is expected to be contributed by the manufacturing sector.</p>.<p class="bodytext">"USD 5 trillion economy target by 2025-26 means a CAGR of 8.5 per cent. Within that, the target of manufacturing is USD 1 trillion, which means 12 per cent from manufacturing and within manufacturing, automotive plays a significant role. If manufacturing has to grow 12-13 per cent auto must grow by 14 per cent," Goenka said during a panel discussion at the India economic conclave 2019.</p>.<p class="bodytext">He further said currently the auto industry contributes 7 per cent of GDP which is good but when compared with the other major auto producing countries, which are all in double digits, the Indian industry's share is still lower.</p>.<p class="bodytext">"Auto is only 4 per cent of exports in India as compared to auto manufacturing countries like Thailand, Germany, Korea, and Japan which are more than 10 per cent," he added.</p>.<p class="bodytext">"This year happens to be a bad year but last 10 years what we did if you repeat the same thing, we will not achieve and this number will be just a number. Secondly, export will play an important part but you will have to look at domestic more while we can improve exports. Engineering services also can be made strong," he added.</p>