Vehicle manufacturers and dealers placed big bets on pent-up demand. In its absence, old wounds have reopened.
On Wednesday, the Union cabinet approved a production-linked incentive (PLI) scheme for 10 sectors to the tune of Rs 1.46 trillion over five years. The automobile and auto components sectors are set to corner a lion’s share of this—roughly Rs 57,000 crore.
A timely step for the auto sector, it can be argued. Its performance has a strong correlation to the economy, employs several million people, accounts for 7.1% of India’s gross domestic product and nearly 22% of the manufacturing sector’s GDP.
But recent reports in the media have presented a rather rosy picture of the industry staging a strong …
Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.
Executive Editor
surendar@mailtmc.com
Mumbai