look news india
If you are planning to buy a car in the next few years then there is good news for you. Actually, in the Union Budget 2024, the government has spent a huge amount on the auto sector. Let us tell you that in Budget 2024, Finance Minister Nirmala Sitharaman has made a provision of Rs 3500 crore (2024-2025) for automobiles and auto components under the Production Linked Incentive Scheme (PLI). Let us tell you that in Budget 2023-2024, this PLI was only Rs 604 crore.
First understand what is PLI scheme
According to budget experts, the government launched the Production Linked Incentive Scheme for the first time in March 2020. The aim of this scheme is to increase domestic production in the country. The aim of this scheme is to promote manufacturing units in the country and reduce their expenditure on import of goods.
Thousands of youth will get employment
Actually, under this scheme, the government gives incentives to companies based on the sale of products made in India. The aim of the scheme is to encourage local companies to increase their production in the country. In such a situation, the government will give more money than before to make auto parts and other components related to this sector. Cheap production will affect the prices of vehicles in the next few years. Along with this, thousands of youth will also get employment.
Customs duty on cobalt and lithium removed
Apart from this, it is expected that the price of electric vehicles will come down after Budget 2024. In fact, in Budget 2024, Finance Minister Nirmala Sitharaman has completely removed the customs duty on cobalt and lithium, the battery components used in electric vehicles. At present, vehicle manufacturing companies are spending crores of rupees to import it from abroad. In such a situation, if the cost of manufacturing electric cars and two-wheelers falls, it will have a direct impact on their prices. With this announcement in the new budget, auto experts say that lithium batteries will become cheaper in the future. Which will reduce the replacement cost on buying an electric two-wheeler or car.