Union minister Nitin Gadkari said on Wednesday India’s automotive industry has the potential to become the largest in the world, calling it a growth engine.
“This industry is the backbone of the economy. My dream is to make this industry number one in the world….[At present] Number one is the US, and second is China. Gadkari also highlighted India’s progress in developing an ethanol-based economy, saying, “Ethanol economy is successful. The push for biofuels has become more critical amid the West Asia crisis, which has disrupted supplies and pushed crude oil prices higher. However, the move has triggered concerns among some vehicle owners, with motorists reporting reduced engine performance and apprehensions about damage to fuel lines and other components. Owners of older vehicles, many of which may not have been designed for high ethanol blends, have been seeking availability of lower blends such as E10.
He said India’s automotive sector contributes over ₹ 22.75 lakh crore to the economy, underscoring its importance to the country’s economic growth and industrial ecosystem. He made the remarks at the inaugural HT Auto Leaderboard Awards 2026 that sought to recognise the vehicles, people and innovations shaping India’s automotive industry. The awards also featured two panel discussions on ‘Make for the World: Is India ready to become the world’s auto powerhouse?’ and ‘Road to 2030: Ethanol, EVs & beyond – India’s new mobility energy mix’. It introduced E20, a blend of 20% ethanol and 80% petrol, as part of efforts to reduce vehicular emissions and cut dependence on crude oil imports. After a phased rollout, E20 became the only petrol variant available at fuel pumps in the country from April 2026.
India is the third,” Gadkari said. The Ethanol Blended Petrol Programme (EBPP) is one of India’s key energy initiatives aimed at improving energy security, supporting farmers and reducing environmental impact through greater use of domestically produced renewable fuel, according to the Centre.
The government, for its part, has sought to address these concerns and insisted that E20 blends improve performance and lower carbon emissions. Industry executives have also claimed that E20 petrol has undergone rigorous scientific testing, is safe for both new and older vehicles, and is critical for reducing India’s dependence on imported crude oil. The discussions at the HT Auto Leaderboard Awards also focused on India’s ambitions to strengthen its position as a global automotive manufacturing and export hub. The ‘Make for the World’ panel examined whether India is ready to become a global auto powerhouse, with discussions around manufacturing, exports, technology and innovation.
The ‘Road to 2030’ panel focused on the changing mobility energy mix and the role of ethanol, electric vehicles and other emerging technologies in India’s transportation sector.
