What happened

The Ministry of Heavy Industries has reported the implementation status of the PLI Scheme for Automobile and Auto Component Industry in India (PLI-Auto). The scheme was approved on 23 September 2021 with a budgetary outlay of Rs. 25,938 crore to expand India’s manufacturing capability in advanced automotive products.

According to the Ministry, the scheme is being implemented on a pan-India basis. Approved applicants can set up units anywhere in the country, and the scheme does not provide special incentives to any individual state.

Background and earlier position

The PLI-Auto scheme is part of India’s broader production-linked incentive approach for strengthening domestic manufacturing and reducing import dependence in strategic sectors. In the automobile sector, the policy focus is on advanced automotive products, which include high-value components and technology-intensive parts.

A key design feature of the scheme is the requirement of minimum Domestic Value Addition (DVA) of 50% for incentive eligibility. This condition is meant to ensure localisation rather than simple assembly activity.

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