PLI Scheme for Automobile & Auto components

PLI Scheme for Automobile & Auto components

Part of: GS-Prelims ad GS-III: Indian Economy 

In News: The Government has issued notification regarding Production Linked Incentive (PLI) Scheme for Automobile & Auto components. The scheme has two components viz Champion OEM Incentive Scheme and Component Champion Incentive Scheme, and will be implemented over a period of five years starting from FY 2022-2023.

• Envisages to overcome the cost disabilities of the industry for manufacture of Advanced Automotive Technology products in India. 
• The incentive structure will encourage industry to make fresh investments for indigenous global supply chain of Advanced Automotive Technology products. 
• It is estimated that over a period of five years, the PLI Scheme for Automobile and Auto Components Industry will lead to fresh investments of over Rs 42,500 crores, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. 
• Increase India’s share in global automotive trade.

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News Source: PIB