PLI scheme to help make domestic auto industry globally competitive: ACMA

"The announcement of the approval of the PLI scheme for the auto and auto component sector is indeed a very welcome step to make the industry 'Aatmanirbhar' and globally competitive," Deepak Jain, President of ACMA, said. He also said the association is hopeful that the outlay announced will encourage the industry to become net exporter and help reduce import dependence.

Auto component makers' body ACMA on Wednesday welcomed the government's Production Linked Incentive (PLI) scheme, saying that the move is a step in making the industry 'Aatmanirbhar' (self-reliant)  and globally competitive. In a statement, the Automotive Component Manufacturers Association of India (ACMA) said the scheme will also encourage the industry in becoming a net exporter and reducing its dependence on imports.

The Union Cabinet on Wednesday approved offering Rs 2 lakh crore-worth of production-linked incentives to 10 key sectors, including auto and steel, to boost domestic manufacturing. "The announcement of the approval of the PLI scheme for the auto and  auto component sector is indeed a very welcome step to make the industry 'Aatmanirbhar' and globally competitive," Deepak Jain, President of ACMA, said.

He also said the association is 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," Jain said.

While the auto component industry exports over 25 per cent of its production, Jain  said, "our ambition is to capture a significant proportion of global trade". PTI IAS RAM.