Union Cabinet Approves Production Linked Incentive Scheme For Automobile And Auto Components
The Union Cabinet has approved Production Linked Incentive (PLI) scheme for 10 sectors, Among sectors, auto components and automobile sectors have received the maximum incentive of Rs 57,000 crore. Total allocation under PLI may likely be of about Rs 1.46 lakh crore over five years. As per the scheme, the Centre will provide incentives on additional production and will allow companies to export products made in India. This incentive comes with the aim of helping India become a global hub of manufacturing and source for global industries.
Here is how the industry is reacting to this new development
“The Automotive Industry is a major economic contributor in India. The PLI scheme will make the Indian automotive Industry more competitive and will enhance globalization of the Indian automotive sector. This will also improve export and will make the production better in economies of scale. With increasing Auto Production and the Government giving incentives, I am sure that our Principals will trickle down the benefits to the end customers. This will therefore help in demand generation and help us in reviving the economy thus making us reach our Prime Ministers vision of US$ 5 Trillion economy.” Said Mr. Vinkesh Gulati – President FADA
Thanking the Hon’ble Prime Minister Narendra Modi, Deepak Jain, President ACMA said, “The announcement of the approval of the PLI (Production Linked Incentive) Scheme for the auto & auto component sector is indeed a very welcome step to make the industry ‘Atmanirbhar’ and globally competitive. We are hopeful that the outlay announced will encourage the industry to become net-exporter and help reduce import dependence. We eagerly await the detailed contours of the scheme for the auto and auto component sector.”
“SIAM welcomes the announcement of Production Linked Incentive Scheme for enabling Auto Industry to be a part of the Global Value Chain with an allocation of Rs 57,000 crores, over the course of next 5 years. We thank the Government of India for echoing its confidence on the Indian Automobile industry, as the industry was eagerly awaiting for this scheme to increase its competitiveness and take the growth of the sector to the next level. We look forward to the details of the scheme that would be rolled out by Ministry of Heavy Industries & Public Enterprises.” said Mr Kenichi Ayukawa, President, SIAM & Managing Director & CEO, Maruti Suzuki India Ltd
