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Maruti plant to add Rs 20,000 crore to GDP
October 01, 2004 19:32 IST
The proposed car plant of auto market leader Maruti will contribute Rs 20,000 crore (Rs 200 billion) to the country's GDP besides generating 1.3 million jobs once it is fully operational.
By available benchmarks, it has been found that the new car plant, part of Japanese Suzuki Motor's Rs 6,000 crore (Rs 60 billion) investment in the country, would pump in Rs 20,000 crore to India's GDP, sources said.
The Rs 20,000 crore estimate excludes the economic impact of the upcoming diesel engine plant and likely investment in Maruti's existing Gurgaon (Haryana) plant.
On September 23, Suzuki had unveiled its plans to inject
Rs 6,000 crore in the country, one of the largest investments in the domestic automobile industry, for setting up a new car plant, diesel engine unit and for upgradation of Maruti's Gurgaon plant.
The Rs 6,000 crore investment will made in the next 5-7 years.
The new plant will be set up by joint venture Suzuki Maruti India, which will have a capacity to produce 250,000 units annually. The plant will be operational by early 2007.