Need to ramp up R and D to create indigenise technology: Niti Aayog CEO

Speaking at the 60th Annual Session id ACMA, which was held virtually on Saturday, Kant said the move will aide the country in reducing imports.

"There is also need for new synergies such as with IT industry in the areas of power electronics," he said.

"India must look at using the first mover advantage for producing all components for EVs, thus driving towards the path of being a future global leader."

According to Kant, with EV battery prices set to go below $100, there is a huge opportunity in the sector to localise indigenising EVs.

"The future course requires to focus on local manufacturing and across tier 1, 2 and 3 suppliers as we believe all resources and capabilities are available in India," he said.

In his address to the session, Kant said India's recovery is seen on the back of automobile and component manufacturing.

"We must make the Indian companies excel, capture the large domestic market and using it as springboard to penetrate the international market," he said.

"Level of localisation remains 20-30 per cent in tier 1 auto components suppliers, which comprises low tech components provides a technological imperative to produce and source within India."

In addition, he said that being one of the largest employing sectors, the auto component sector employs 72 per cent of the total workforce in the auto sector, 10 times the labour intensity of OEMs.

"With such potential, we believe that there is a need to create more jobs in the components sector with skill development programs in new technologies such as EVs," he said.