The Production-Linked Incentive (PLI) scheme for the automobile and auto components industry was launched with much fanfare in 2021. It was heralded as a transformative initiative to position the country as a global manufacturing hub for advanced automotive technologies. Yet, three years in, the progress remains underwhelming. The recent data from the ministry of heavy industries (MHI) shows that only 12 out of 82 approved applicants have managed to meet the mandated 50% domestic value addition (DVA) target. This means the majority of the players have not qualified for incentives.
In this context, the scheme could be revisited to assess whether or not the targets for DVA are realistic or whether the approach should be different altogether. If the PLI for smartphones, the highly successful scheme based on which other such plans were designed, serves as a guide, scaling up domestic assembly and becoming part of the global value chain should probably be the first priority. The focus on adding value domestically could probably come later.
Esta historia es de la edición December 30, 2024 de Financial Express Hyderabad.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición December 30, 2024 de Financial Express Hyderabad.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
'America First' stalls bond issuance bonanza in EMs
A RECORD START to the year for emerging-market bond sales is at risk of fizzling as high Treasury rates hamper weaker credits from tapping international capital.
Avenue needs a q-commerce boost
THE RETAILER IS LOSING OUT ON CONSUMER SPENDS
PLFS reflects positive employment trends
As India strides towards the vision of Viksit Bharat, empowering youth with the right skills and work experience continues to be a priority
These Men in Blue Break Boundaries for the Disabled
ON JANUARY 7 this year, a 17-member Indian cricket team was given a warm send-off for a four-nation Champion Trophy tournament in Sri Lanka.
Govt capex flow augurs well for FY26
Truck and bus maker Ashok Leyland (ALL) has unveiled three new commercial vehicles, including an electric light truck, at the Auto Expo.
Comfortable design for 24/7 wear
It tracks fitness, sleep, stress & other key health vitals
India and NZ Should Address Market Access for Goods: GTRI
INDIA AND NEW ZEALAND should address market access issues for goods, promote collaborations in key sectors, and work on improving connectivity with an aim to boost bilateral trade, which is just $1.5 billion, think tank GTRI said on Sunday.
'MBA isn't at risk; it's in transition'
Rekha Sethi, the director general of the All India Management Association (AIMA) - the apex body for management profession in India - is of the opinion that despite poor placements at business schools last year, the MBA degree isn't at risk. \"It's in transition,\" she says.
Tech firms face setback as Wi-Fi spectrum allocation plan nixed
IN A MOVE that could significantly impact tech giants such as Meta, Google and others, the department of telecommunications (DoT) has decided not to pursue the delicensing of new spectrum for Wi-Fi use, officials said.
Bank of Japan Set to Raise Interest Rates
BANK OF JAPAN governor Kazuo Ueda will size up the need to raise interest rates on Friday amid heightened expectations of a hike — and barring a market shock triggered by Donald Trump’s first few days in the White House.
