PLI scheme expected to create 7.5 lakh jobs in auto sector

In the next five years, the production-based incentive (PLI) plan for auto and auto components manufacturers is estimated to create 7.5 lakh new employment and raise output by Rs 2,31,500 crore. The automobile PLI programme provides financial incentives of up to 18% to increase local manufacture of sophisticated automotive technology items and attract investments in the automotive manufacturing value chain.

Over Rs 45,000 crore investment is expected

Arun Goyal, Secretary of the Ministry of Heavy Industries, stated on Monday, “The 20 businesses we have picked for the PLI programme of the auto sector have pledged investment of more than Rs 45,000 crore. Our budget is Rs 25,938 crore, thus we are confident that this would result in a rise in production of Rs 2,31,500 crore.”

20 auto companies selected in PLI scheme

Under the PLI plan launched for firms creating automobiles and parts, 20 companies, including Ford, Tata Motors, Suzuki, Hyundai, Kia, and Mahindra & Mahindra, would be eligible for incentives. Applicants were chosen as part of the Champion Original Equipment Manufacturer (OEM) incentive programme.

7.5 lakh jobs will be created

According to the secretary, there is a focus on ‘Made in India.’ There is a requirement that at least 50% of the value addition be done in the United States. This encompasses micro, small, and medium-sized businesses. He stated that this is why we predict that this plan would generate 7.5 lakh extra employment over the next five years.

 

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