In September 2021, the Ministry of Heavy Industries (MHI)
released the Production Linked Incentive (PLI) scheme for the
automobile sector. The scheme was designed to bolster the growth of
the local manufacturing ecosystem for advanced automotive products
in India, along with the aim of creating a global auto
manufacturing hub and manufacturing champions in the country. The
scheme is expected to bring investments into the country amounting
to over USD 5.6 billion over its tenure while creating employment
for over 750,000 individuals.
In November 2021, the detailed application procedure and
guidelines for the PLI scheme were released. The scheme
incentivizes Auto Original Equipment Manufacturers (OEMs) as well
as Auto Component Manufacturers while also, providing an
opportunity for new investors who are currently not a part of the
automotive manufacturing space.
