If the Indian auto ecosystem was not attractive, the investment would not have come in, said Arun Goel, Secretary, Union Ministry of Heavy Industries, while addressing the media in Chennai. Days after Ford India announced the closure of its plants at Maraimalai Nagar in Tamil Nadu and Sanand in Gujarat, a top government official said that the past five years would not have seen investments to the extent of about $34.5 billion had the country’s automotive sector been not attractive, indicating that business decisions are based on each company’s ‘corporate strategy.’
Goel was having a discussion on the production linked incentive scheme (PLI) for the automobile industry with a budgetary outlay of Rs 260.58 billion. PLI Scheme for Automobile Industry and Drone Industry is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 trillion.
The PLI scheme is expected to boost the industry after the announcement by Ford India early this month. It was on September 9 that the company had announced the shutdown of assembling in Sanand by the fourth quarter of this financial year and vehicle and engine manufacturing in Chennai by the second quarter of 2022.
Source: Business Standard
Image Source: Google Images
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