Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance
The Production-Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry (PLI-Auto), launched by the Ministry of Heavy Industries (MHI) on 23 September 2021 with a budgetary outlay of ₹25,938 crore, aims to boost domestic manufacturing and technological upgradation in advanced automotive technology (AAT) products, including electric vehicles (EVs). By mandating a minimum 50% Domestic Value Addition (DVA), the scheme incentivizes investments in the automotive manufacturing value chain, attracting ₹44,326 crore in investments and generating 67,820 jobs as of 31 March 2026. Notably, R&D expenditures by beneficiary companies are counted towards investment norms, encouraging innovation and cutting-edge technology adoption in project implementation. This aligns with broader government initiatives like ‘Make in India 2.0’, which targets 27 sectors, including 15 manufacturing segments, to position India as a global manufacturing and innovation hub.
For banking and SSC aspirants, understanding the PLI-Auto scheme is crucial as it reflects government policies driving industrial growth, job creation, and technological advancement—key themes often tested in exams. RBI Grade B candidates should note how such schemes impact macroeconomic indicators like GDP growth, employment, and sectoral investments, which influence monetary policy decisions. The scheme’s emphasis on EVs and AAT products also ties into India’s push for green mobility and sustainable development, a topic frequently featured in current affairs sections of these examinations.
Source: PIB (Press Information Bureau)
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