Auto industry biggest beneficiary in Centre’s Rs 2 lakh crore PLI scheme: SIAM, FADA welcome announcement

The Union Cabinet on Wednesday approved giving PLI to sectors such as auto, pharma, telecom, textile, food product, and solar.

By:November 12, 2020 11:06 AM
fada siam pli schemeImage for representational purpose only

Automobile industry will be the biggest beneficiary of the government’s Production Linked Incentive (PLI) scheme, the Federation of Automobile Dealers Associations (FADA) said on Wednesday. Welcoming the announcement by the government to give Rs 2 lakh crore worth production-linked incentives for 10 sectors to boost domestic manufacturing, FADA said the step will also make the Indian auto industry more competitive globally, improve export, and will make production better in economies of scale.

“Automobile Industry will be the biggest beneficiary with Rs 57,042 crore outlay over the next 5 years and out of the 10 key chosen sectors,” FADA President Vinkesh Gulati said in a statement.

Stating that the automotive industry is a major economic contributor in India, he further said, “The PLI scheme will make the Indian automotive industry more competitive and will enhance globalisation of the Indian automotive sector.”

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This will also improve export and will make the production better in economies of scale, he added.

“With increasing auto production and the government giving incentives, I am sure that our principals (manufacturers) will trickle down the benefits to the end customers. This will therefore help in demand generation and help us in reviving the economy thus making us reach our prime minister’s vision of USD 5 trillion economy,” Gulati said.

Kenichi Ayukawa, President, SIAM & Managing Director, said:

“SIAM welcomes the announcement of Production Linked Incentive Scheme for enabling Auto Industry to be a part of the Global Value Chain with an allocation of Rs 57,000 crores, over the course of the next 5 years. We thank the Government of India for echoing its confidence in the Indian Automobile industry, as the industry was eagerly waiting for this scheme to increase its competitiveness and take the growth of the sector to the next level. We look forward to the details of the scheme that would be rolled out by the Ministry of Heavy Industries & Public Enterprises.”

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