With this, the ministry aims to boost the domestic manufacturing sector and reduce dependence on imports, thereby creating more job opportunities for Indians.
Pandey also added that it would contribute to the overall economic growth of the nation. The scheme is expected to attract significant investments and help India become a global hub for automobile manufacturing, an official statement said.
The Ministry of Heavy Industries notified the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-AUTO Scheme) on September 23, 2021, with a budgetary outlay of Rs 25,938 crore.
The PLI-Auto Scheme proposes financial incentives to boost domestic manufacturing of advanced automotive technology (AAT) products and attract investments in the automotive manufacturing value chain.
The scheme has two parts: Champion OEM, which will make electric or hydrogen-powered vehicles, and Component Champions, which will make high-value and high-tech components.
On November 9, 2021, the heavy industries ministry notified the categories of 19 AAT vehicles and 103 AAT components that shall be covered under the scheme.
These components are either advanced or latest-technology automotive components, those for which the supply chain is non-existent in India, or both. Thus, with this scheme, India will be able to increase its share in the global advanced technology and automotive supply chains, the statement said.