Union cabinet Announces PLI Schemes For Auto, Drone Industries

Mumbai: To enhance India’s manufacturing capabilities, the Union Cabinet on Wednesday approved Production Linked Incentive (PLI) schemes for the auto, auto-component and drone industries.

Briefing the media about the cabinet decision, Union Minister Anurag Thakur said that the PLI scheme has a budgetary provision of Rs 26,058 crore – Rs 25,938 crore for the auto sector and Rs 120 crore for the drone industry.

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“Automobile industry contributes to 35 per cent of the manufacturing GDP of the country. It is a leading sector in generating employment. If we speak of the global automotive trade, then we need to increase India’s participation,” said Thakur.

Thakur said that the PLI scheme “has been brought in keeping in mind the present and future needs and also for the local markets, so that we can strengthen our industry.”

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The newly announced PLI scheme will be effective for five years from the financial year 23 and the base year for eligibility criteria will be 2019-20. A total of 10 automakers, 50 auto component manufacturers and five new non-automotive investors will be benefited from this scheme.

The Prime Minister Narendra Modi-led Cabinet has reportedly taken key decisions to provide much-needed relief to the telecom and auto sectors.

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