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EMPLOYERS SIGNUP

PLI scheme likely to boost India's manufacturing output

Prime Minister Narendra Modi said production linked incentive (PLI) scheme, which is aimed at boosting domestic manufacturing and exports, is expected to increase the country's production by $520 billion in the next five years.

The government plans to impose tariffs on imports of lithium-ion cells for the next 10 years. With the country only manufacturing battery storage packs and heavily relying on Chinese imports for the rest, the aim is to become self-sufficient across the EV value chain by 2025.

This is a significant opportunity for the private sector to participate and accumulate benefits under the PLI scheme and at the same time, contribute to India's large and unique battery manufacturing story. While efficient implementation will determine the overall success, the scheme is well positioned to provide a boost in production, competitiveness and exports of manufacturing companies.

Indian companies generally import batteries, which account for more than half the cost of an EV. The government has proposed the building of local manufacturing facilities, seeking to reduce the cost and encourage competition.

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