India's Automotive Mission

India’s Prime Minister Dr. Manmohan Singh yesterday launched the Automotive Mission Plan 2006-2016. The main objective of the plan is to make India a global hub for manufacturing of automobiles and related components.As per the plan the turnover of the industry has to be increased from current 35 billion dollars to 140 billion dollars by 2016. Exports are to be increased from current 4 billion dollars to 35 billion dollars.A fresh investment of $40 billion dollars is required for this to be achieved. The plan offers many incentives for the automobile sector like tax breaks for fresh investments and incentives for exports. A single window clearance system will be setup for fresh FDI in the auto sector.It also recommends setting up Special Automobile Zones on same lines as Special Economic Zones (SEZs).If everything goes as planned, the automobile sector will be employing 25 million people by 2016.