India's electric vehicle market is expected to grow to Rs. 2 trillion (US$ 20.9 billion) by 2030 and create 50 million jobs, Union Minister for Road Transport and Highways Nitin Gadkari said recently.

According to media sources, speaking at a summit organised by the CII-ITC Centre of Excellence for Sustainable Development, Gadkari said India currently has 5.7 million registered electric vehicles, with EVs accounting for 7% of the market.

"India's electric vehicle market will be worth Rs. 2 trillion by 2030. It will also create 50 million jobs by 2030," he said.

Gadkari said India has significant potential to expand EV manufacturing, particularly in the electric bus segment. The country has an annual demand for around 100,000 electric buses but currently has the capacity to manufacture only 50,000-60,000 units, he said.

The minister also reiterated the government's ambition to make India's automobile industry the largest in the world within the next five years.

"Within five years, our target is to make India's automobile industry the number one in the world. It is difficult, but not impossible," Gadkari said.

Growth of Automotive Industry

According to the minister, the size of India's automobile industry has grown significantly since he took charge of the road transport ministry, rising from around Rs. 1.4 trillion to Rs. 2.2 trillion. He placed the current size of the industry at around Rs. 2.3 trillion, compared with Rs. 7.8 trillion for the US and Rs. 4.7 trillion for China.

Gadkari said India's automotive industry is positioned for further growth, supported by trained manpower, competitive manufacturing costs and the presence of major global automobile companies. He also pointed to the export strength of domestic manufacturers, noting that Bajaj Auto and Hero MotoCorp export more than half of the vehicles they produce.

The transition towards electric mobility is also central to reducing India's dependence on imported fossil fuels, Gadkari said. India currently spends around Rs. 2.2 trillion on fossil fuel imports, which also contribute to the country's pollution challenges.

Alongside alternative fuels and electric mobility, the government is focusing on reducing logistics costs to improve India's global competitiveness. Gadkari said the expansion of expressways and economic corridors has helped bring down India's logistics costs to around 10% from 16% earlier, citing a report prepared by IIT Chennai, IIT Kanpur and IIM Bangalore.

The government is now targeting a further reduction in logistics costs to 8%, he said, adding that lower logistics costs would be crucial to improving the competitiveness of Indian industry in global markets.