- IAM expects the scheme to increase competitiveness and take the growth of the sector to the next level; ACMA feels it will encourage the industry to become a net exporter and reduce its dependence on imports
Mahindra Group Chairman Anand Mahindra has said that the government’s announcement of a production-linked incentive scheme for 10 more sectors, including auto, signals a “dramatic shift” in the attitude towards the industry.
On November 11, the Cabinet approved production-linked incentive (PLI) scheme for 10 more sectors, including automobiles and auto parts, pharmaceuticals, textiles and food products, with an outlay of about Rs 1,45,980 crore over a period of five years.
Under another PLI scheme, an outlay of Rs. 51,311 crore has already been approved. “I took some time to explore the contours of this initiative. I don’t use the term ‘game-changer’ too often but it’s apt in this case. For me, what’s much more important than the mechanics of the scheme is the dramatic shift it signals in the attitude towards the industry,” Anand Mahindra said.
In another tweet, he said, he started his career during the “License Raj” where scale and growth were “frowned upon”.
“Finally, this policy signals recognition that a) scale is imperative in order to nurture globally competitive businesses, b) large enterprises foster a large ecosystem of small/micro enterprises,” Mahindra said in the tweet.
The auto and auto component industry bodies Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association (ACMA) have already said that the initiative will help the industry not only become globally competitive but also self-reliant.
SIAM expects the scheme to increase competitiveness and take the growth of the sector to the next level, while ACMA said that the PLI scheme will also encourage the industry to become a net exporter and reduce its dependence on imports.
The government think tank NITI Aayog identified 10 sectors as key sectors which will help attract investments to shore up revenue.
Follow us on: Twitter
Follow us on: Facebook
Read Everyday Blogs at Daily Blog Day