Context: The new PLI scheme for automotive sector will incentivize the industry to move into higher-value-added technologies and thus spur sectoral growth.
An overview of India’s automotive industry
Issues and challenges in auto sector
State intervention - Production-linked incentive (PLI) scheme for the auto sector
Conclusion: Taking the lead from PLI scheme, automotive industry must step up and invest in future technologies, advanced manufacturing and improving their processes as well as skilling their workforce, so as to bolster India’s integration with global value chains.