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Analysis Study Research Paper | Commerce and Economic Studies | India | Volume 12 Issue 6, June 2023
Impact of Growth of Automobile Industry on Air Pollution in India
Dr. Bipin Namdev Bandekar | Krupa Ketan Mayenkar
Abstract: The average growth rate of India?s GDP was between 2.5 to 3 % from 1947 to 1991. It was due to protectionism policy of Govt. of India. The Liberalization policy of 1991 boosted industrial sector including automobile industry and India?s average growth rate reached to the level of 6 to 8 %. In 2019, India was the seventh largest manufacturer of commercial vehicles. Today, India is the world?s fifth largest automobile market in terms of sales, after Germany, selling about 3.49 million units in passenger and commercial categories and total 26.28 million units. India has largest and fastest growing automobile industry with the turnover of 120 billion US $ which is more than 4 % of India?s GDP. Employment wise, more than 1.7 million people are employed in auto sector. Automobile industry also contributes at large extent towards the growth of Indian economy. On the other hand, rise in the number of vehicles leads to increase in air pollution, which creates the environmental problems. Air pollution causes many health issues especially related to respiration. The study is based on secondary data collected from multiple sources. The data of automobile industry in India is collected from Society of Indian Automobile Manufacturers and the data of air pollution level is collected from International Energy Agency. The period of the study is from 2006 to 2020. The graphical presentation explains the growth of automobile industry in India. Descriptive statistics and Linear Correlation Matrix are used to test the relation between growth of automobile industry and air pollution level. Regression technique is used to test the impact of automobile industry growth on air pollution. The empirical analysis inferred that highest production of all vehicles together was 309.1 lakh in 2019, the highest sales was 262.66 lakh in 2019, and the record export was 47.66 lakh in 2020. It is also confirmed that two wheeler segment contributes in majority for production, sales and export. Growth of automobile industry is restricted in 2019- 20, may be due to COVID-19 pandemic. India?s maximum air pollution is from Electricity and Heat Producers sector 51.13 % and 3 % from the other energy industry. Air pollution level shows increasing trend every year. The Regression OLS model confirmed that the sales of automobile vehicles have a significant impact on air pollution in India. Hence, it is concluded that the growth of Indian automobile industry contributes to the air pollution.
Keywords: Air pollution, Automobile Industry, Growth, India
Edition: Volume 12 Issue 6, June 2023,
Pages: 1828 - 1834