India becomes manufacturing base for car makers
Twenty-two OEMs registered for incentives
India’s auto mobile sector is one of the largest in the world and has become a manufacturing base for global car makers.
Giving this assessment, Heavy Industries and Public Enterprises Minister Anant Geete said the sector is accounting for over 7.1% of the GDP and contributing nearly 22% of India’s manufacturing GDP.
He also highlighted that 22 Original Equipment Manufacturers with 80 models are registered for availing demand incentive the Faster Adoption Manufacturing of Hybrid And Electric Vehicles (FAME) in India.
The FAME scheme was launched in 2015 and is proposed to be implemented over a period of 6 years till 2020.
As of 31 March 2018, the Government has given Rs.256.93 crore in financial support (demand incentive) to about 186,431 electric/hybrid vehicles.
Nearly 500 electric buses have been sanctioned across nine major cities with an expected cash outflow of Rs.280 crore. This will be a game changer in the public transport sector, said Geete.
The capital goods policy, launched in 2016, aims to increase the production of capital goods from Rs.230,000 crore in 2014-15 to Rs.750,000 crore in 2025 and raising direct and indirect employment from the current 8.4 million to 30 million.
The policy’s vision is to increase the share of capital goods contribution from present 12% to 20% of total manufacturing activity by the year 2025. fii-news.com