What happened (government approval and stated outcomes)
The Government approved the PLI-Auto scheme (Production Linked Incentive for the Automobile and Auto Component Industry) on 23.09.2021. The scheme targets expansion of India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products, including electric vehicles (EVs).
The Government stated the following scheme features and outcomes:
Budgetary outlay: Rs. 25,938 crore.Incentive logic: Financial incentives are provided for manufacturing AAT products, including EVs.Domestic Value Addition (DVA) condition: Eligibility requires a minimum 50% Domestic Value Addition (DVA).Investment and jobs (government-stated): The scheme has attracted Rs. 44,326 crore investment and generated 67,820 employment by 31.03.2026.
Background and earlier position (what the scheme is meant to do)
The PLI-Auto scheme is designed to support the automobile manufacturing value chain by linking incentives to manufacturing of technology-forward products (AAT products). A central design element is the Domestic Value Addition (DVA) requirement, which pushes beneficiary firms to source and manufacture more value inside India rather than relying only on imported inputs.
Related current affairs
- Government approves and details implementation status of PLI-Auto scheme for automobile and auto components
- Government approves PLI-Auto scheme with Rs. 25,938 crore outlay
- Government approves PLI-Auto scheme for advanced automotive products; implementation status till 31.03.2026
- PLI Schemes attract over ₹2.40 lakh crore investment and generate 14.15 lakh jobs; exports exceed ₹15.2 lakh crore
- Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet (REPM)
- PM E-DRIVE Scheme (Electric Drive Revolution in Innovative Vehicle Enhancement)