PLI scheme for auto sector to help India be a world-class manufacturing base, say experts, industry
The production linked incentive PLI scheme announced for auto and auto-components sector would add to the countrys cost competitive value chain, de-risk the supply chains and go a long way in developing India as a world-class automotive manufacturing base, according to industry and experts.
The production linked incentive (PLI) scheme announced for auto and auto-components sector would add to the country's cost competitive value chain, de-risk the supply chains and go a long way in developing India as a world-class automotive manufacturing base, according to industry and experts. The Cabinet on Wednesday approved a 25,938-crore PLI scheme for the auto sector focused on promoting the manufacturing of advanced automotive technology products like electric and hydrogen-fuel vehicles. CII Director General Chandrajit Banerjee said it will also help to position India as an attractive manufacturing hub for sourcing high-end auto components. Saurabh Kanchan, Partner, Deloitte India said incentivising new products such as electric vehicles and alternate fuels as well as advanced technologies is a welcome move. ''This would aid in their localization and wider adoption, thereby enhancing safety and consumer experience. The overall approach appears to be balanced, though review of the outlay would be welcome as industry was anticipating incentives in line with the initial announcements,'' Kanchan said. Sharing similar views, Mahua Acharya, Managing Director and CEO of Convergence Energy Services Ltd, said the scheme will give a big boost to the electric mobility ecosystem and has the potential to attract large-scale investments over the next few years. ''The government has walked the talk and now it is the turn of the automobile industry to respond with positivity. The increased investments and technological innovations will not only decrease the cost of inputs of EVs as it will give a boost to domestic production of batteries. ''This augurs well for a future of green transport and will help big time in energy transition goals,'' Acharya said. Yogesh Pawar, chairman, Association of Inspiring Syndicate of Entrepreneurs, said this scheme would aid the momentum of electric vehicles and alternative fuels in the country. ''The incoming electric vehicle revolution is disrupting the global markets. It is now an opportunity for India to act as the key catalyst to prove its manufacturing strength to the entire world. ''To reap the desired benefits of this scheme, bureaucracy will need to be held accountable for not only the implementation and documentation, but also for the communication of this scheme to the proposed beneficiaries and the people of this country who are investing,'' Pawar said. PHDCCI President Sanjay Aggarwal too said it would encourage businesses to invest in cutting-edge technologies and products that will help India gain a foothold in the global marketplace. ''Further, this scheme will improve the sector's competitiveness and propel it to the next level of development,'' he added.
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