APRIL, 20259GOVT, INDUSTRY MUST COLLABORATE ON SAF INCENTIVES, LOGISTICS: AJAY SINGHINDIA'S AUTO SECTOR DRIVES 7.1% OF GDP, EYES GLOBAL LEADERSHIP: NITIAjay Singh, CMD of SpiceJet, stated that the government and industry must collaborate to establish a "significant incentive and logistic structure" for the production of sustainable aviation fuel (SAF) to aid in lowering carbon emissions.Conversations have taken place with the Prime Minister's Office regarding the allocation of areas close to airports for SAF refineries to reduce transportation expenses, and also with oil marketing firms such as IOC, BPCL, and HPCL to establish a mini refinery for SAF production at their current refineries, he mentioned."I think one of the things that we need to do is to have these SAF refineries, which are relatively simpler, probably closer to airports. If you're really serious about it. We've had this discussion with the PMO as well, that, can you allot spaces, which are close to airports so that the transport cost, which is the largest part of that cost, because you know you have to address these issues," Singh said.The SpiceJet CMD stated that eventually, the government and the industry must collaborate to develop a substantial incentive and logistical framework to produce SAF.In 2023, the output of SAF was approximately 0.5 million tonnes, and this figure needs to rise significantly by 2050.The International Air Transport Association (IATA) previously announced plans to create the SAF Registry in order to enhance the adoption of the fuel by accurately tracking and reporting emissions reductions achieved through its usage. India's automotive sector serves as the foundation of the country's manufacturing and economic development, accounting for 7.1 percent of India's Gross Domestic Product (GDP) and 49 percent of manufacturing GDP, as per a NITI Aayog report named `Automotive Industry: Powering India's Participation in Global Value Chains'.The report outlines India's potential in the automotive sector within the Global Value Chain (GVC) and emphasizes strategic routes for achieving global leadership.As the world's fourth largest automobile manufacturer, India has the capacity and strategic insight to become a global leader in the automotive value chain. The industry encompasses a broad ecosystem, ranging from vehicle production and auto parts manufacturing to strong connections with essential sectors like steel, electronics, rubber, IT, and logistics.India's automotive sector is a fundamental element of the country's manufacturing and economic development, accounting for 7.1 percent of India's Gross Domestic Product (GDP) and 49 percent of manufacturing GDP.In recent years, India has experienced remarkable growth in vehicle manufacturing, producing more than 28 million units in 2023­24 alone. The industry's impact extends beyond production, sustaining millions of direct and indirect jobs, fostering innovation, and playing a crucial role in India's green mobility shift, industrial goals, and trade approach.India's trade ratio in auto parts is nearly neutral (~0.99), as exports and imports are almost equal. This also highlights the domestic sector's narrow involvement in high-value, high-precision areas like engines and engine parts, as well as drive transmission and steering systems, where India commands only 2­4 percent of the global trade share. TOP STORIESAPRIL, 20259
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