• Recently, the Union Cabinet approved a Rs. 26,058 crore Production Linked Incentive (PLI) scheme for auto, auto-components and Drone industries to enhance India’s manufacturing capabilities.
  • The scheme for the sector is part of the overall production-linked incentives announced for 13 sectors in the Union Budget 2021-22 with an outlay of Rs 1.97 lakh crore.
  • It is a significant milestone in India’s journey towards ‘Atma Nirbharta’ and will enable the country to join the top order of Auto and Drone manufacturing nations.

Important points:

  • PLI scheme, introduced in March 2020, aims to give companies incentives on incremental sales from products manufactured in domestic units.
  • Apart from inviting foreign companies to set shop in India, it also aims to encourage local companies to set up or expand existing manufacturing units.

PLI for Auto Sector:

  • It excludes conventional petrol, diesel and CNG segments (Internal Combustion Engine) since it has sufficient capacity in India.
  • It is incentivizing only advanced automotive technologies or auto components whose supply chains are weak, dormant, or non-existing.
  • It is aimed at boosting new technology and the economy of clean fuels.

PLI for Drone Sector:

  • It covers a wide variety of drone components, including airframe, propulsion systems, power systems, batteries, inertial measurement unit, flight control module, ground control station, communication systems, cameras, sensors, spraying systems, emergency recovery system, and trackers.
  • It is expected to bring fresh investments of over Rs 5,000 crore and incremental production of over Rs 1,500 crore and create additional employment of about 10,000 jobs.
  • It will encourage entrepreneurs to strive towards building drones, components, and software for the global market. It will also open many more verticals for the utilisation of drones.
  • It will help reduce imports. At present 90 %of the drones in India are imported.
  • The government intends to make India into a global drone hub by 2030.


About sree nivas

Check Also

What to do with spent nuclear fuel?

Syllabus:  Alternate fuel Context: Japan has started releasing treated radioactive water from the beleaguered Fukushima …

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Free Updates to Crack the Exam!
Subscribe to our Newsletter for free daily updates