PLI Scheme Boosts India's Auto Sector with Significant Investments

The Production Linked Incentive (PLI) scheme for automobile and auto components has attracted a proposed investment of Rs 67,690 crore, according to the Economic Survey 2023-24. So far, Rs 14,043 crore has been invested. The scheme aims to generate 1.48 lakh jobs, of which 28,884 have been created.

The Production Linked Incentive (PLI) scheme for automobile and auto components has garnered a proposed investment of Rs 67,690 crore, as revealed by the Economic Survey 2023-24 tabled in Parliament on Monday.

As of the end of March 2024, Rs 14,043 crore has already been invested under this initiative.

Applicants have proposed the creation of 1.48 lakh jobs, with 28,884 positions already filled by March 31, 2024, according to the survey.

The scheme has approved 85 applicants thus far.

The PLI scheme has a budgetary outlay of Rs 25,938 crore from FY23 to FY27 and includes the champion OEM incentive scheme and the component champion incentive scheme.

Furthermore, the government approved the National Programme on Advanced Chemistry Cell (ACC) Battery Storage in May 2021, which has a budgetary outlay of Rs 18,100 crore.

The domestic automotive parts industry saw moderated growth between FY20 and FY23 compared to the previous five years, as per the survey.

Passenger vehicles saw significant growth in the first half of the last decade but were heavily impacted by the pandemic.

While passenger vehicles rebounded quickly, the recovery for two-wheelers, three-wheelers, and commercial vehicles has been slower.

In FY24, India produced approximately 49 lakh passenger vehicles, 9.9 lakh three-wheelers, 214.7 lakh two-wheelers, and 10.7 lakh commercial vehicles, according to the report.