Centre approves PLI scheme for auto, drone and auto-component industries

Union minister Anurag Thakur said that ₹25,938 crores will be allotted to the auto sector and ₹120 crores to the drone industry under the budgetary provision for the PLI scheme.

Union minister Anurag Thakur on Wednesday announced that the Cabinet has approved the production linked incentive scheme for auto, auto-component, and drone industries, saying it will “enhance India's manufacturing capabilities.” Thakur told a briefing that ₹25,938 crores will be allotted to the auto sector and ₹120 crores to the drone industry under the budgetary provision for the PLI scheme.

Union minister Anurag Thakur addresses a press briefing on Cabinet decisions in New Delhi. (PTI / File photo)

“The automobile industry contributes to 35% of the manufacturing GDP of the country. It is a leading sector in generating employment. If we speak of the global automotive trade, then we need to increase India's participation,” the Union minister said.

Thakur added that the PLI scheme has been brought “keeping in mind the needs of the present as well as the future, and for local markets too.”

Noting the benefits of drones in almost of sectors, the government said in a release that they can be significant creators of employment and economic growth “due to their reach, versatility, and ease of use, especially in India’s remote and inaccessible areas.​” It further stated that India has the potential of becoming a global drone hub by 2030, given its traditional strengths in innovation, information technology, frugal engineering and its huge domestic demand.