PLI scheme for automotive industry to be expanded to boost manufacturing
The Ministry of Heavy Industries has announced the extension of the Production-Linked Incentive (PLI) scheme for the automobile and auto parts industries. Originally scheduled to run from 2023 to 2027, the period of this system was extended by one year. As a result, incentives under the PLI scheme will be available from 2024 to 2028.
Strengthening domestic manufacturing
The extension is aimed at strengthening domestic production and attracting investment in the automobile and auto parts sector. This is in line with the government’s overarching objective of promoting ‘Make in India’ and making key industries self-reliant. The PLI scheme is expected to foster technological progress, enhance competitiveness and create substantial employment opportunities within the industry.
Support industry challenges
The extension of this scheme demonstrates the Government’s commitment to supporting the industry to meet challenges and take advantage of growth opportunities in a changing global market. Companies that do not meet the criteria for an increase in confirmed sales will not receive incentives for that year, but will continue to receive benefits in the following year if they meet the criteria with a 10% year-on-year increase compared to the first year. are eligible to receive it. Year threshold.
Enhanced clarity and flexibility
These amendments aim to bring clarity and flexibility to the regime, ensure a level playing field for all approved companies, and protect companies that wish to bring forward their investments. The Union Ministry of Heavy Industries has extended the PLI scheme for motor vehicles and motor vehicle parts by one year with amendments to provide clarity and flexibility. These amendments are expected to provide clarity and support to the sector and foster growth and competitiveness.