Economic Survey 2024: PLI Scheme Attracts Rs 67,690 Crore Investment Proposals
Pune, 22nd July 2024: Finance Minister Nirmala Sitharaman presented the Economic Survey for 2024 on Monday, ahead of the Union Budget (Budget 2024). The survey highlighted that the Production Linked Incentive (PLI) scheme for the automobile sector has received investment proposals totaling ₹67,690 crore. This report provides details on the investments, job creation, and production trends in the automotive sector.
The Economic Survey 2023-24, delivered in Parliament, disclosed that the PLI scheme for automobiles and auto components has attracted proposed investments amounting to ₹67,690 crore. By March 2024, ₹14,043 crore of this capital is expected to be invested. The survey outlines that the scheme, which includes the Champion Original Equipment Manufacturer (OEM) Incentive Scheme and the Component Champion Incentive Scheme, has been allocated a budget of ₹25,938 crore for the fiscal years 2023 to 2027.
Regarding job creation, the survey noted that applicants under the PLI scheme have proposed creating 148,000 jobs, with 28,884 jobs already established by March 31, 2024. So far, 85 applicants have received approval under the scheme. Additionally, the government approved a national program for Advanced Chemistry Cell (ACC) battery storage in May 2021, with a budgetary allocation of ₹18,100 crore.
The survey also highlighted production trends, indicating that domestic production and consumption of automotive parts from FY20 to FY23 have increased at a slower rate compared to the previous five years. While there was a notable rise in passenger vehicles, including cars and utility vehicles, the COVID-19 pandemic significantly impacted all automotive sectors. Passenger vehicles have recovered rapidly, but the recovery for two-wheelers, three-wheelers, and commercial vehicles is still in progress. In FY24, the country produced approximately 4.9 million passenger vehicles, 990,000 three-wheelers, 21.47 million two-wheelers, and 1.07 million commercial vehicles.
