Speaking at the Auto Awards, Union transport minister Nitin Gadkari said that India's automotive sector contributes over ₹22.75 lakh crore to the economy

Updated on: Sep 30, 2026, 20:13:57 IST

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Union Minister Nitin Gadkari said on Wednesday that India's automotive industry has the potential to become the largest in the world, describing it as a key engine of economic growth.

“This industry is the backbone of the economy. My dream is to make this industry number one in the world….[At present] Number one is the US, and second is China. India is the third,” Gadkari said

He noted that India's automotive sector contributes ₹22.75 lakh crore to the economy, underscoring its central role in the country's economic growth and industrial ecosystem.

Gadkari made the remarks at the inaugural Auto Leaderboard Awards 2026 that sought to recognise the vehicles, people and innovations shaping India's automotive industry.

The awards also featured two panel discussions on ‘Make for the World: Is India ready to become the world's auto powerhouse?’ and ‘Road to 2030: Ethanol, EVs & beyond – India's new mobility energy mix’.

Gadkari on successful ethanol economy

The Union minister highlighted India's progress in developing an ethanol-based economy, saying, “ethanol economy has been successful.”

"Aready, the ethanol economy is very successful. Since 2022, we have had four crore four-wheelers and 20 crore two-wheelers running on E20 petrol. We have never received a single complaint. Even a lot of people sitting here must have E20 in their vehicles. Is there any complaint? There is no complaint," he said.

The push for biofuels has become more critical amid the West Asia crisis, which has disrupted supplies and pushed crude oil prices higher.

After a phased rollout, E20 (a blend of 20% ethanol and 80% petrol) became the only petrol variant (barring premium variants) available at fuel pumps in the country from April 2026.

Ethanol is produced from agricultural commodities such as sugarcane, maize and surplus rice. Blending of domestically produced ethanol procured at stable, pre-agreed prices insulated from global crude price hikes has ensured that consumers pay less per litre of petrol, according to the government.

India’s road to becoming an auto powerhouse

The discussions at the Auto Leaderboard Awards also focused on India's ambitions to strengthen its position as a global automotive manufacturing and export hub.

The ‘Make for the World’ panel discussion focused on manufacturing, exports, technology and innovation.

The ‘Road to 2030’ panel focused on the changing mobility energy mix and the role of ethanol, electric vehicles and other emerging technologies in India's transportation sector.

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