Government approves and details implementation status of PLI-Auto scheme for automobile and auto components
PLI-Auto scheme crosses implementation milestone with investment, sales and employment gains reported by the Ministry of Heavy Industries
- The scheme is meant to expand manufacturing in advanced automotive products and promote domestic value addition.
- Approved applicants under PLI-Auto can set up units anywhere in India, and the scheme does not grant special incentives to any state.
- Eligibility for PLI-Auto incentives requires a minimum Domestic Value Addition of 50%.
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.
UPSC may ask about the design of production-linked incentive schemes, the role of domestic value addition in industrial policy, and the implementation challenges of manufacturing incentives across states.
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