The Government of India, led by Hon'ble Prime Minister Shri Narendra Modi, has approved the PLI Scheme for Automobile and Drone Industries, with a budgetary allocation of 26,058 crores, as a step towards achieving the vision of a "Aatmanirbhar Bharat."
PLI in Auto Sector
The PLI Scheme for the auto sector aims to help the industry overcome cost barriers in the production of Advanced Automotive Technology goods in India. The incentive structure will encourage businesses to invest in a new global supply chain for Advanced Automotive Technology products made in the United States.
The Union government has lowered the PLI scheme's budget from Rs 57,043 crore to around Rs 26,000 crore. The plan has been tweaked to emphasize innovative automobile technologies. The scheme excludes manufacturers of gasoline, diesel, and compressed natural gas (CNG) vehicles.
The PLI Scheme for the Automobile and Auto Components Industry is expected to result in new investment of over 42,500 crore, the incremental output of over 2.3 lakh crore, and extra employment prospects of over 7.5 lakh jobs during a five-year period. In addition, India's part of global automotive commerce will grow as a result of this.
Vehicles and products with high-value Advanced Automotive Technology will be rewarded under the PLI scheme for the car industry. It will usher in a new era of high-tech, energy-efficient, and environmentally friendly automobile production.
The newly announced PLI plan will be in place for five years beginning in FY23, with 2019-20 as the foundation year for eligibility requirements. The initiative will benefit ten vehicle manufacturers, 50 auto component producers, and five new non-automotive investors.
PLI Scheme for the Drones and Drone components
The Drones and Drone Components PLI Scheme focuses on the strategic, tactical, and operational applications of this new technology. To expand capacity and make drones essential drivers of India's growth plan, a product-specific PLI scheme with explicit revenue targets and a focus on local value addition is required. Over the course of three years, the PLI for Drones and Drone Components will result in investments of 5,000 crores, a rise in eligible sales of 1500 crores, and the creation of 10,000 extra jobs.