The Indian government has announced the extension of the Production Linked Incentive (PLI) scheme for the automobile sector by another year till FY28. The decision was made in response to the industry’s demand for more frequent disbursement of incentives. Currently, the incentives under the PLI scheme are given on a yearly basis. However, industry stakeholders have been advocating for quarterly disbursement in order to better address their cash flow needs and spur investment in the sector. The government has now acceded to this demand and agreed to disburse the incentives on a quarterly basis. The PLI scheme for the automobile industry was originally launched in 2020 with an aim to incentivize domestic manufacturing and boost India’s position as a global manufacturing hub. Under the scheme, companies are eligible for incentives based on their incremental sales of certain automobile categories, including electric vehicles and hydrogen fuel cell vehicles. The incentives are disbursed based on the eligible sales of a financial year, and the criteria for eligibility are laid down in the scheme guidelines. As per the new extension, the PLI scheme for autos will now be applicable until FY28. This move is expected to provide a significant boost to the automobile sector, as it aligns with the industry’s demands and helps address their financial concerns. The quarterly disbursement of incentives will enable the companies to plan and invest in a more systematic manner, driving growth and innovation in the sector. The extension of the PLI scheme is also expected to attract more investment in the automobile industry, both from domestic players and foreign investors. It will enhance the competitiveness of the Indian automobile manufacturing ecosystem and contribute to job creation and skill development. The PLI scheme has been hailed as a landmark initiative by the government to promote domestic manufacturing and make India a global manufacturing hub. It has already seen significant success in other sectors such as mobile phones and electronics. With the extension of the scheme for the automobile sector, the government aims to replicate this success and further strengthen India’s position in the global automotive industry. The PLI scheme, along with other initiatives and policies, is part of the government’s larger vision to boost domestic manufacturing, reduce import dependence, and create a self-reliant ecosystem. With the quarterly disbursement of incentives, the government is taking a crucial step towards meeting the industry’s demands and providing the necessary support to accelerate growth in the automobile sector.