In today's globally interconnected economy, events in one region inevitably ripple through others, influencing markets and shaping international growth trajectories. According to Oxford Economics and Forbes India, the global GDP stands at approximately $116.1 trillion today, projected to rise significantly to between $334 trillion and $350 trillion by 2047-2050. Within this vast global growth narrative, India's economic trajectory stands out distinctly, anticipated to expand nearly five-fold from its present value, outpacing other major economies such as China, whose GDP is expected to roughly double during the same period.
Similarly, the global motor vehicle market, projected to grow at a compounded annual growth rate (CAGR) of 7.7%, highlights India's automotive sector as particularly vibrant, expected to grow at 8.1%. Given this robust forecast, experts increasingly see “India as a crucial driver of global economic momentum,” said Alok Jaitley, Executive Vice President & Head of Homologation Vertical, Maruti Suzuki India Limited.
Addressing a session on ‘De-carbonisation, Energy, Sustainability, Skill Development, organised alongside Automotive Testing Expo 2025, Jaitley discussed about the factors that are propelling this remarkable Indian growth story. A deeper dive reveals five fundamental pillars driving India's surge: economy, society, infrastructure, new-age business dynamics, and energy transformation, he mentioned.
Economy
At the forefront is the economy itself, fuelled by robust domestic demand from India's youthful, aspiring population. Complemented by proactive government initiatives such as 'Make in India', the economy has grown from $2.84 trillion to $4.3 trillion in just five years, with ambitions to soon cross the $5 trillion milestone.
Society
According to him, the society plays an equally pivotal role; India’s demographic dividend—with an average population age of around 28-29 years—translates into a massive, dynamic workforce that accounts for about 35% of the nation's working-age group, forming a vital backbone for sustained growth.
Infrastructure
Infrastructure expansion emerges as another crucial element. Modern expressways and highways aren't simply about connectivity; they're strategically designed to reduce product-to-market timelines significantly. Initiatives to connect ports, airports, railway yards, and industrial hubs exemplify India's infrastructural shift, cutting logistics costs dramatically. Notably, major manufacturers such as Maruti Suzuki are already leveraging railways extensively to streamline logistics and reduce carbon footprints, he explained.
New-age Business Dynamics
Simultaneously, India's entrepreneurial ecosystem is reshaping business dynamics profoundly. Driven by innovation-friendly policies, the nation's vibrant startup landscape is ushering in new business models, redefining market expectations and competitiveness.
Energy Transformation
Energy emerges as the fifth and perhaps most critical sector shaping India's future. Embracing renewable energy initiatives—from solar and wind energy to biofuels and green hydrogen—the country is steadily moving towards energy security, significantly influencing its economic stability and sustainability goals.
Opportunities & Obstacles
Yet, growth invariably comes with challenges. India's ascent brings environmental concerns, heightened by rapid industrialisation and rising consumption. Issues like greenhouse gas emissions, air and water pollution, resource depletion, and waste management loom large. Social concerns also evolve rapidly, driven by globalised consumer aspirations, resulting in shorter product life cycles and increasing demand for innovation, speed, and customisation, Jaitley observed.
Further challenges lie in bridging the skills gap, managing affordability amid rising production costs, navigating global economic uncertainties, and addressing persistent infrastructure bottlenecks exacerbated by rapid urbanisation. Among these complex challenges, environmental sustainability and decarbonisation stand paramount, he noted.
Containing CO2
Taking a leaf out of the global data, he said transportation alone contributes around 15% of total CO₂ emissions, with India mirroring this global trend at 12-15% despite significantly lower vehicle penetration rates. India's automobile market penetration currently hovers around 34-35 vehicles per thousand people, projected to more than double within a decade, highlighting the urgency for sustainable growth strategies.
Recognising this urgency, India's government has laid out ambitious decarbonisation targets under initiatives like Panchamrit, announced by Prime Minister Narendra Modi at COP26. Clear, measurable goals—achieving 500 GW non-fossil energy capacity by 2030, deriving 50% energy from renewables by 2030, cutting carbon emissions by 1 billion tonnes, and ultimately reaching net-zero by 2070—underline India’s decisive approach towards sustainability, he highlighted.
Contribution From Automotive Sector
In response, automakers are exploring diverse pathways: electric mobility, hybridisation, flex-fuel vehicles, bio-CNG, and other innovative technologies. Maruti Suzuki exemplifies this proactive stance, embracing multifaceted decarbonisation initiatives. At its Manesar facility, the company has implemented a pilot biogas plant converting bio-waste into electricity, alongside substantial solar energy generation projects across plants. Further initiatives include India’s first automotive recycling plant – Maruti Suzuki Toyotsu India (MSTI) a Registered Vehicle Scrapping Facility established as a joint venture with Toyota, extensive railway utilisation for logistics, and comprehensive efforts in hybrid and electric vehicle technologies, he mentioned.
Complementing these technological shifts, Maruti Suzuki actively promotes employee wellness through initiatives like the Joy of Fitness programme, integrates sustainability into infrastructure (including Miyawaki forest plantations and smart, energy-efficient office buildings), and adheres strongly to Suzuki’s global Sho-Sho-Kei-Tan-Bi philosophy, advocating for Smaller, Fewer, Lighter, Shorter, Beautiful and aesthetically refined products to maximise efficiency and reduce waste.
Ultimately, India's growth narrative reflects a careful balancing act between harnessing unprecedented economic opportunities and responsibly addressing environmental imperatives. The collective response of government, industry, and society to these interconnected challenges and opportunities will determine not only India's place in the global economy but also the legacy left for future generations, he said.
Challenges In Homologation
The convergence of automotive and digital technologies is reshaping the vehicle development landscape, presenting both opportunities and challenges. Speaking to Mobility Outlook, Jaitley said, one of the key benefits lies in the potential to shorten development timelines through the use of simulation, digitisation, and digital twins. However, a major bottleneck remains in the area of homologation, which typically begins only after engineering development and validations are complete.
According to him, homologation teams are often left with limited time, as their work forms the final stage before a vehicle reaches series production. Despite the time crunch, the team mitigates risks by leveraging early-phase digital simulations and validations. This proactive approach helps avoid surprises during physical testing, although repeat tests are occasionally required. “Digital tools, when integrated early in the development cycle, play a crucial role in helping meet homologation targets more efficiently,” he said.
Supplier Support
The supplier value chain also plays a critical role in this process. Jaitley pointed out that the ecosystem has matured significantly, with adequate time allocated for pilot production and mass production trials. These trials are used to evaluate suppliers’ capabilities to meet peak volume demands. “While some challenges persist, early planning and collaboration help streamline the transition to production,” he said.
Regarding development timelines, full model changes can take anywhere from two to four years, while minor updates typically require around 18 months to two years. Although concrete data is lacking, the growing use of CAD/CAM, simulation tools, and digital twins is expected to reduce these timelines over time.
In manufacturing, technologies like IoT and digital twins are proving valuable in preventing breakdowns and improving facility management, both in R&D and on the shop floor. While exact numbers remain speculative, the industry is optimistic about the transformative potential of digitalisation in driving efficiency and reducing development cycles, he signed off.
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