PLI scheme for India’s auto sector to boost profitable production: government
Minister of State for Heavy Industries, Krishan Pal, told the Lok Sabha on Tuesday that the Production Linked Incentive (PLI) in the automotive sector will boost profitable production in India.
Responding to a question during ‘question time’, he said the PLI program aims to work towards making four-wheeled vehicles with improved technology.
“We will encourage our industries to invent technology so that we are able to produce four-wheeled vehicles, including cars with advanced technology, fuel efficiency and improved safety features at lower cost.”
He also said, “We have to import technology from abroad and pay high prices for components imported from foreign countries.
“Under the PLI, we will develop technology under the ‘Aatmanirbhar Bharat’ mission and this will not only curb the import of technology and components, but bring investment into the country,” Pal said.
He said old technologies used to make cars and other four-wheeled vehicles were the main cause of the high prices.
“Once we have developed the latest technology, the costs will go down since we can produce locally. The global automotive industry is worth US$15 billion, but India holds less than two percent share in this segment. This will improve with the PLI scheme,” the minister said, adding that new job avenues will also be opened up in the automotive sector.
Congressman Ravneet Singh mentioned that from now on, the automotive sector is suffering losses every day and companies like Ford have closed their manufacturing units in India. The government must take action to stop the closure of these auto businesses, he said.
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