Auto PLI Scheme - What Lies Ahead? Nirmal Bang
A rack of gear wheels passes through an automotive component washing machine at a factory in Maharashtra, India. (Photographer: Dhiraj Singh/Bloomberg)  

Auto PLI Scheme - What Lies Ahead? Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

We attended a panel discussion on the Indian automotive industry under the Production-Linked Incentive scheme where some noted industry experts discussed what they expect from the PLI scheme for the Auto sector. Below are the highlights -

The Government of India is planning to extend the PLI scheme under the Global Champion plan to 10 more key sectors, including automotive.

Given that the auto industry is one of the biggest contributors to gross domestic product (over 7%) and, goods and services tax collection (15-17%) besides creating over 30 million jobs in India, budget allocation to the auto sector under the PLI scheme is approximately 40% - one of the highest.

Click on the attachment to read the full report:

Nirmal Bang Auto Sector Update-Auto PLI Scheme-23 December 2020.pdf

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