Union Government notified regarding the Production Linked Incentive (PLI) Scheme for Automobile & Auto components on September 23, 2021.

• Earlier government had approved the PLI Scheme for Automobile and Auto Component Industry on September 15, 2021.
• The Union Cabinet had approved the Rs 26,000 crore PLI scheme for automobile and auto component industry on 15 September.
• The PLI Scheme for the auto sector seeks to overcome the cost disabilities of the industry for manufacturing Advanced Automotive Technology products across India.
• This incentive structure will encourage industries in making fresh investments for indigenous global supply chain for Advanced Automotive Technology products.

According to an estimate, the Automobile and Auto Components Industry will lead to investments of more than Rs 42,500 crores over a period of five years. It will also lead to an incremental production of about Rs 2.3 lakh crore and create additional employment opportunities of 7.5 lakh jobs. As a result, India’s share in global automotive trade will increase.