The government of India has announced a Production Linked Incentive scheme for the auto industry. The Federation of Automobile Dealers Associations of India (FADA) has welcomed this decision.
FADA has stated that the automobile industry will be the biggest beneficiary of this scheme with Rs. 57,042 crores outlay over the next 5 years.
The Production Linked Incentive scheme is also expected to make the Indian automotive industry more competitive and will enhance globalization of the sector. Exports are expected to go up and will improve production in terms of economies of scale. Further, the new scheme is expected to generate demand and will thus assist in reviving the economy.
As part of the Production Linked Incentive scheme, the government has approved Rs. 2,00,000 crore over 5 years to create jobs and boost manufacturing in the country. A total of 10 different sectors will benefit from this.
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