India’s GDP will become the third biggest thanks in part to the auto sector: Pandey
Mahendra Nath Pandey, the Minister of Heavy Industries, stated on Tuesday that the automotive sector in India will play a major role in the country’s ascent to the position of the third-largest economy.
During his speech at the car Production Linked Incentive (PLI) summit in New Delhi, he said, “India’s economy is currently the fifth largest in the world, but it will soon overtake all other economies to become the third largest.” The car sector is prepared to play a part in this direction, having contributed the largest percentage of 35% to the GDP.
The Rs 25,938 crore Production Linked Incentive (PLI) plan for Automobile and Auto Components (PLI-AUTO plan) is managed by the Ministry of Heavy Industries.
According to an official statement, results are being seen as businesses start investing and as car models are accepted to get advantages from the program.
The targeted investment of Rs 67,690 crore has been successfully attracted by this initiative, of which Rs 13,037 crore has been invested as of December 31, 2023.
To determine if any new car parts require continued PLI assistance, a committee has also been established.
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Mahindra & Mahindra is the first three-wheeler manufacturer to meet DVA requirements, according to the release. ” Early adopters Mahindra & Mahindra, Tata Motors, and Ola Electric have already obtained Domestic Value Addition (DVA) certification for their 22 Advanced Automotive Technology (AAT) product versions from testing organisations, according to a statement released by the company.
The first business to satisfy the DVA requirements for both the bus and four-wheeler categories is Tata Motors.
The first two-wheeler firm to meet the DVA requirements is Ola Electric. Under this PLI initiative, 115 firms have submitted 120 applications in total.
Eighty-five of them—sixty-seven for the Component Champion Incentive scheme and eighteen for the Champion OEM Incentive scheme—have been authorized. For both components of the program, two auto OEM firms were accepted.