FICCI welcomes Cabinet approval for PLI in Auto and Drones sector

Sep 15, 2021

PLI To Support Faster Promotion of Green Mobility in the Country

• Will Create Robust Eco-system for EVs in the Country
• PLI for drones to boost start-ups & MSME players

NEW DELHI, 15 September 2021: Thanking the Government for announcing PLI for the Automotive sector today, Ms Sulajja Firodia Motwani, Chairperson, FICCI Electric Vehicle Committee said, "We are happy to see that auto PLI has focused on encouraging eco-system for the green mobility in the country and to ensure that India is self-reliant in these technologies. This augurs well for the country as a whole, since it would lead to faster introduction and adoption of sustainable technologies and help us in achieve our sustainable development goals ahead of time."

"For EV industry the combination of trio namely FAME II and PLI for batteries and automotive will encourage industry to make fresh investments in the country in new technologies and help in overcoming the cost disabilities. This will help in building robust supply chain for the sector," said Ms Firodia.

"To build domestic supply chains for EV, large supply chain investments are required. Clear policy directive with clear milestones for transition to EV as envisaged under PLI will drive further investment in EV sector," added Ms Firodia.

EV industry was affected due to Covid in the last one year. However, due to timely interventions by the Government like PLI now, has provided confidence to the industry to invest in this sector. Also, worldwide the automotive sector is going through disruptions and India is well poised now to take leadership position in global EV space.

Commenting on the PLI for drones, Mr Rajan Luthra, Chair, FICCI Committee on Drones said, "FICCI welcomes the acceptance of our recommendation of PLI for drones. Coming within 3 weeks of the liberalized Drone Rules 2021, it will act as a rocket-booster for drone start-ups and MSME players at the nascent stage of their growth path. We thank PM Mr Narendra Modi for this bold step."

Mr Ankit Mehta, Co-Chair, FICCI Committee on Drones said, "The PLI scheme will encourage all drones and components manufacturers to come to India to leverage the low-cost manufacturing environment and even the great talent pool we have here. It will also make investments in domestic drone and component companies more attractive for investors. The PLI scheme is a real shot in the arm for realizing the mission of making India a true drone hub by 2030 and an Atmanirbhar Bharat."