A New India
Chapter 297 - 297: Gathering the Team

National Automobile Policy Commission Report (1955)

Submitted to: The Government of India

Date: July 1955

Commission Lead: Gopal Krishnan (Chairman)

Commission Members: Experts in economics, industrial policy, infrastructure, and manufacturing.

The automobile sector in India has reached a pivotal point.

However, challenges such as technological dependence, limited domestic manufacturing capabilities, and affordability barriers hinder progress.

This policy outlines a roadmap to develop India's automobile industry into a self-reliant, globally competitive sector by 1970.

Through robust industrial policies, foreign collaborations, consumer-oriented reforms, and export strategies, India will emerge as a hub for innovation and manufacturing in the automotive domain.

Goals of the Commission

1. Transform India into a leading manufacturer of passenger and commercial vehicles by 1970.

2. Achieve 70% localization of automotive components, reducing dependency on imports.

3. Boost domestic demand by making vehicles affordable for middle-class families and rural consumers.

4. Develop export markets in Asia, Africa, and the Middle East, branding India as a reliable, cost-effective automotive leader.

5. Establish a robust R&D ecosystem to drive innovation in fuel efficiency and alternative energy.

Recommendations and Policy Proposals

1. Industrial Policy Reforms

1. Special Automobile Zones (SAZs):

Establish manufacturing hubs in Maharashtra, Tamil Nadu, Gujarat, West Bengal, and Punjab.

Offer tax holidays, land subsidies, and lower electricity tariffs to attract manufacturers.

2. Modernization Funds:

Allocate ₹100 crore to modernize facilities of Hindustan Motors, Premier Automobiles, and Standard Motors.

3. State Partnerships:

Encourage states to provide infrastructure grants and subsidies for manufacturers.

4. Ancillary Industry Development:

Establish dedicated steel plants in Odisha and Jharkhand for automotive-grade materials.

Expand rubber production in Kerala and Tamil Nadu for tire manufacturing.

2. Technology Transfer and Foreign Collaborations

1. Joint Ventures:

Mandate foreign automakers like Ford, General Motors, and Fiat to collaborate with Indian firms, ensuring 30% localization in five years.

2. Incentivized Investments:

Provide five-year tax exemptions for foreign firms establishing plants in India.

Enforce technology-sharing agreements to train Indian engineers and technicians.

3. Consumer-Oriented Policies

1. Hire-Purchase Financing:

Partner with banks to enable affordable vehicle financing for middle-class families.

2. Rural Subsidies:

Offer subsidized loans for farmers purchasing tractors and utility vehicles.

3. Two-Wheeler Production:

Promote affordable two-wheeler manufacturing to improve rural mobility.

4. Export Strategies

1. Target Emerging Markets:

Focus on exporting vehicles to developing nations in Asia, Africa, and the Middle East.

2. Branding Campaigns:

Launch "Made in India" campaigns to position Indian vehicles as reliable and cost-effective alternatives to Western brands.

5. Research and Development (R&D)

1. National Automotive Research Institute (NARI):

Develop engines focusing on fuel efficiency, rural utility, and alternative fuels.

Collaborate with IITs and foreign firms for advanced engineering solutions.

2. Skill Development:

Set up vocational training centers in SAZs to prepare workers for automotive manufacturing.

Economic Impact Projections

Production Growth:

Passenger cars: Increase from 50,000 to 1 million units annually by 1970.

Commercial vehicles: Increase from 20,000 to 500,000 units annually by 1970.

Localization:

Achieve over 70% domestic component production, significantly reducing import reliance.

Exports:

Generate ₹500 crore annually by exporting vehicles to over 50 countries.

Employment:

Create over 5 million jobs in manufacturing, R&D, and ancillary industries.

Economic Contribution:

Ensure the automobile sector contributes 5% of GDP by 1970.

Proposed Implementation Framework

1. National Automobile Board (NAB):

Oversee the policy implementation and ensure compliance with localization and export targets.

Monitor progress and address challenges in real-time.

2. Incentive Programs:

Provide tax breaks and infrastructure support to manufacturers adhering to policy mandates.

3. Public-Private Partnerships (PPP):

Engage private firms in infrastructure development and skill training initiatives.

Signed

Gopal Krishnan, Chairman, National Automobile Policy Commission

[Other Members' Names and Designations]

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Gopal sat at his desk.

The morning sunlight filtered through the large windows of his office, illuminating stacks of documents and policy drafts.

He had spent hours pouring over the details, knowing that the success of this commission rested not only on policy but on the minds he would bring together.

He leaned back in his chair and pressed the intercom. "Nivedita, bring me the file of shortlisted experts. It's time to finalize this team."

His secretary, Nivedita, entered moments later, clutching a thick file.

She placed it on his desk and waited as Gopal skimmed through the names.

Finally, he put the file down and rubbed his temples.

Gopal: "These are some of the brightest minds we have, but I can't afford hesitation. I'll finalize four names today. Inform them immediately and ensure they're in my office by tomorrow, no matter where they are. This commission will either set a benchmark or collapse under scrutiny. I won't let it be the latter."

Nivedita: "Understood, sir. May I suggest Dr. Hariram for the financial structuring? He's been an asset in every reform committee he's been part of."

Gopal nodded, tapping his pen on the desk. "Hariram is in. Add Dr. Meenakshi Roy from Delhi University for the education and training framework. She's sharp, no-nonsense, and not afraid to call out inefficiency."

Nivedita noted the names swiftly as Gopal continued. "Then there's Dr. Ahmed Khan for technological integration and policies. He's meticulous and forward-thinking. And lastly, bring in Colonel Pratap Singh for logistical planning. If we're going to execute this effectively, we need someone who understands the practical challenges on the ground."

Nivedita: "It's a solid team, sir. I'll contact them immediately."

By mid-morning, Gopal's office was buzzing with activity.

One by one, the four experts arrived, each carrying the weight of their respective fields.

Dr. Hariram, dressed impeccably in a three-piece suit, adjusted his glasses as he entered.

Dr. Meenakshi Roy followed shortly, her brisk steps reflecting her no-nonsense demeanor.

Dr. Ahmed Khan, holding a leather-bound notebook, exchanged polite greetings, while Colonel Pratap Singh, in his crisp uniform, exuded an air of authority.

As they took their seats, Gopal surveyed the room.

Gopal: "Thank you all for coming on such short notice. Let me start by saying this isn't just another commission or policy review. What we're about to embark on is foundational. The Prime Minister himself has entrusted us with this responsibility. You've been chosen because you're the best in your respective fields. But this also means the expectations are sky-high."

Dr. Hariram adjusted his glasses. "Gopalji, can we get a sense of the timeline and scope? A month sounds incredibly less for something this comprehensive."

Gopal leaned forward, his tone firm. "Less time is putting it lightly, Hariram. The government has outlined a one-month deadline for the preliminary report. That means sleepless nights and relentless focus. If you're not ready for that, now is the time to say so."

Dr. Meenakshi raised an eyebrow. "I've handled tough deadlines before, but a month for a national commission? What exactly are we looking at?"

Gopal slid a thick policy document across the table. "This outlines the objectives. We're talking about restructuring the technical and economic cooperation framework between India and Germany. Education, training, logistics, technology you name it. Each of you will spearhead a specific domain."

Dr. Ahmed flipped through the document, his brow furrowing. "The integration of German technology into Indian industries... This will require a complete overhaul of existing systems. Have we considered the resistance we might face?"

Gopal: "Resistance is a given, Ahmed. What matters is how we preempt it. That's why your role is critical. Identify the gaps, anticipate the pushback, and present solutions."

Colonel Pratap, who had been silently observing, finally spoke. "Logistics isn't just about planning on paper. If we're looking at equipment imports, factory setups, and training centers, the infrastructure has to be ready. Are we coordinating with state governments?"

Gopal: "Absolutely. Coordination will be key, and I'll need you to outline the logistical roadmap. Focus on efficiency without compromising quality."

The room grew quieter as the gravity of the task settled in.

Gopal stood, his voice cutting through the tension.

Gopal: "Let me be blunt. This commission isn't just about drafting a report. It's about setting a precedent. We're creating a template for how India approaches international cooperation in the future. Fail, and we set ourselves back a decade. Succeed, and we become a model for other nations."

Dr. Meenakshi tapped her pen against the table. "Gopalji, one concern. If we're pushing for such a comprehensive overhaul, will we have political backing at every stage? Bureaucratic hurdles can slow us down."

Gopal smirked. "The Prime Minister has made it clear: this is non-negotiable. Anyone who tries to create roadblocks will find themselves out of a job. Let's just say there's no shortage of pressure from above."

The group exchanged glances, a mix of determination and trepidation in their eyes.

Dr. Ahmed broke the silence.

Dr. Ahmed: "If that's the case, let's not waste time. Assign the domains, and we'll get started."

Gopal nodded, handing out individual files to each expert. "Hariram, you're on financial structuring and cost analysis. Meenakshi, education and training frameworks. Ahmed, technological integration. And Colonel, logistics and implementation. Review these tonight. Tomorrow, we dive into the details."

As the meeting concluded, Gopal's secretary entered with a tray of tea and biscuits, lightening the mood momentarily.

The experts chatted briefly, sharing anecdotes and breaking the tension.