The recently announced production-linked incentive (PLI) scheme with an outlay of Rs 25,938 crore will benefit domestic auto and auto components sectors in multiple ways, credit ratings agency Icra said in a report released on Tuesday. The scheme aims for a future-ready and globally competitive Indian auto sector, by fast-tracking investments in technology and components where India needs to leapfrog.
Besides, it will increase localisation, accelerate investments towards a local EV ecosystem and has the potential to make India an export hub in the global auto supply chain, Icra said in the report.
The government had on September 19 approved the PLI scheme for the auto industry with an outlay of Rs 26,400 crore that has been slashed from the initial outlay of Rs 57,000 crore.
