– India has identified the auto sector, among others, for which incentive plans are being designed
Sources report that India is looking at offering incentives over the next five years to auto and component makers, in a bid to increase local production and boost exports.
The report claims that these incentives would not only depend on the sales value of the products and the company’s healthy revenue model, but will also take into account things such as the manufacturer’s presence in multiple countries.
Although discussions are in the early stages, one proposal talks about companies getting benefits based on the distance between the factory and the point-of-sale. Then, there’s another which offers incentives to increase production of those car models that are primarily exported.
This initiative is a part of the Indian Government’s efforts to make our country self-reliant by attracting investment, boost manufacturing and generate jobs in the process. A senior government official who chose to be anonymous said, “For autos, the government has engaged with various stakeholders. We have to see what needs to be done in the global context.”
While the intent to boost the sector is clear, all we can say is that the timing couldn’t have been better. Especially when auto sales worldwide are limping back to normalcy due to the Coronavirus pandemic.