Cabinet clears production incentives for auto, drone industries

1 week ago 13

Home >News >India >Cabinet clears production incentives for auto, drone industries

Out of the total outlay of  ₹26,058 crore, the auto sector will get  ₹25,938 crore, while the drone industry will receive  ₹120 crore.Premium Out of the total outlay of 26,058 crore, the auto sector will get 25,938 crore, while the drone industry will receive 120 crore. 1 min read . Updated: 15 Sep 2021, 03:38 PM IST Gireesh Chandra Prasad
This will boost the production of advanced automobiles, auto components and drones in the country and help create champion industries in these sectors, minister Anurag Thakur said

NEW DELHI : The Union Cabinet on Wednesday approved a 26,058 crore scheme to incentivise the production of automobiles, auto components and drones in the country.

Union minister Anurag Thakur said at a briefing that the production-linked incentive scheme has proved to be very successful in the past and benefits could be seen in different sectors.

“Government has approved production linked incentives for auto industry, auto component industry, drone industry to enhance India’s manufacturing capability," Thakur said after the Union Cabinet, led by Prime Minister Narendra Modi, approved the scheme.

Out of the total outlay of 26,058 crore, the auto sector will get 25,938 crore, while the drone industry will receive 120 crore. This will boost the production of advanced automobiles, auto components and drones in the country and help create champion industries in these sectors, said Thakur.

It is estimated that in five years about 47,500 crore additional investments will come to these sectors, creating about 760,000 new employment opportunities, the minister said.

This is part of the 13 sectors the government identified for promoting local production by giving incentives.

Besides giving a thrust to local manufacturing, the scheme is designed to add new jobs and help scale up exports. While the fiscal support will boost the bottomline of companies, the government hopes to recover its fund outgo by way of tax collections from the incremental sales in the industry.

The Narendra Modi administration has been recalibrating public policy to attain the goal of self-reliance. Last week, the Cabinet had cleared a PLI scheme for the textile sector with a focus on man-made fibre and technical textiles.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close

×

Read Entire Article