The answer to both questions is: No. The real figures are only a fraction of these figures.
Who is putting out such high figures?
The heads of the automobile industry. Auto industry bodies claim that the automotive sector accounts for 7 (or 7.5) per cent of India’s GDP, 49 per cent of manufacturing output, and 37 (or 40) million jobs“directly and indirectly”.
Why are they propagating these false claims?
By inflating the contribution of the auto industry to GDP and employment, the auto barons hope to squeeze out even more concessions and subsidies from the Government.
These are the figures Anand Mahindra uses to demand tax concessions of the Centre, saying that “kick starting the auto industry with a few short-term measures will serve a greater national purpose”. The same figures are trundled out by the Maruti Suzuki chairman to demand that state governments do their bit to rescue the auto industry. Bodies representing automobile manufacturers, component makers, and car dealers have cited the same figures to the Finance Minister while pressing for a stimulus package. A Google search for these figures turns up innumerable citations in the media (for example, here,here,here,here,here, and here). (more…)
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