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.
We have bifurcated the schemes and incentives available to OEM and Component Manufacturers into separate sections for ease of understanding, followed by the common application information.
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