New Delhi: The department of heavy industry (DHI) has proposed setting up of a National Automotive Design Institute (NADI) in response to the countrys growing automobile sector and to enhance the sector's competitiveness.

Described often as a sunrise industry, Indias auto sector has seen an overall average growth rate of approximately 15 per cent over the last five years.

The country is ranked the worlds second-largest manufacturer of two-wheelers and ninth-largest car manufacturer. The worlds largest manufacturer of two-wheelers is also operating from India. For the Indian auto industry to grow and become truly globally competitive, it is essential that adequate investment takes place in R&D and auto designing. The Indian automotive industry achieved a turnover of Rs 2,21,507 crore in the financial year 2007-08 and about Rs 2,19,000 crore in the financial year 2008-09.

The working group on automotive industry for the 11th five-year plan had recommended setting up of an auto design centre at National Institute of Design (NID), Ahmedabad and development of technical design data centre as part of the Centre of Excellence in National Automotive Testing and R&D Infrastructure Project (NATRIP).

According to the heavy industry and public enterprises minister Mr Vilasrao Deshmukh, the NADI would be an important initiative as the designing capabilities within the country are limited and the automobile manufacturers are outsourcing from international design centres.

With the growing automotive market in India, the customers are looking for newer and more stylish vehicles. Automobile designing has, therefore, become as much important as fuel efficiency or safety and ergonomics.

The setting up of an indigenous auto designing capabilities through NADI is, therefore, essential for the growth of the Indian auto industry, he said.