Indian Economy News

PLI for automobile and auto components sector to create 7.5 lakh additional jobs in 5 years, says official

  • IBEF
  • February 15, 2022

Over the next five years, the Production Linked Incentives Scheme for the automobile and auto component industries will result in the creation of 7.5 lakh (750,000) new jobs and incremental production of Rs 2,31,500 crore (US$ 30.61 billion). "The 20 companies we selected have committed an investment of more than Rs 45,000 crore (US$ 5.95 billion). So as per our scheme target, our scheme is of Rs 25,938 crore (US$ 3.42 billion), so we expect this will lead to incremental production of Rs 2,31,500 crore (US$ 30.61 billion) ," Mr. Arun Goel Secretary, Department of Heavy Industry, Ministry of Heavy Industry and Public enterprise. 

He added that these incentive schemes emphasized the necessity of Make in India with the condition that at least 50% of the value addition must be done domestically by going up to Tier 3 which includes micro, small, and medium enterprises. The incentive of up to 18% is intended to encourage industry to invest in the indigenous supply chain of advanced automotive technology products under the PLI Scheme for the auto sector, allowing India to leapfrog to a cleaner, more sustainable, advanced, and efficient electric vehicle (EV)-based system.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.