India’s Ministry of Heavy Industries has outlined major progress across its flagship manufacturing and electric mobility initiatives, highlighting a strong surge in private investment and domestic technological capabilities. Driven by strategic Production Linked Incentive (PLI) schemes and key industrial programs, the ministry’s efforts are accelerating self-reliance in advanced auto manufacturing, battery technology, and critical industrial machinery.
The PLI Scheme for Automobile and Auto Components, approved in September 2021 with a budget allocation of Rs 25,938 crore, has successfully attracted Rs 44,326 crore in investments and generated 67,820 jobs. Designed to boost the localised production of advanced automotive technology products, the scheme mandates a minimum 50 per cent domestic value addition and allows beneficiary companies to count their Research and Development (R&D) expenses toward mandatory investment criteria. Parallelly, the Rs 18,100 crore Advanced Chemistry Cell (ACC) Battery Storage PLI scheme aims to establish 50 Gigawatt-hours (GWh) of domestic battery manufacturing capacity. To date, 40 GWh has been awarded across four companies, attracting Rs 5,180 crore in private investment, creating 1,277 direct jobs, and leading to the operationalisation of a Giga-Scale ACC plant with a 1.4 GWh installed capacity.
To further accelerate clean mobility and strengthen supply chains, the government is executing the PM E-DRIVE scheme alongside a focused push into strategic materials. With a total outlay of Rs 10,900 crore spanning through March 2028, PM E-DRIVE provides direct support for electric two-wheelers, three-wheelers, e-trucks, e-buses, and e-ambulances, while funding public EV charging infrastructure and testing agency upgrades. Additionally, a dedicated Rs 7,280 crore scheme has been set up to build 6,000 Metric Tons Per Annum (MTPA) of capacity for sintered Rare Earth Permanent Magnets (REPM), aiming to curb import reliance for vital EV and renewable energy components.
Complementing these mobility drives, Phase-II of the Capital Goods Competitiveness Scheme is modernising India’s industrial base through advanced technology and Industry 4.0 adoption. The ministry has established four Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) centres nationwide to assist manufacturers in transitioning to digital technologies. Furthermore, targeted funding includes Rs 44.6 crore allocated to the Indian Institute of Science (IISc) Bangalore to expand its Centre of Excellence in digital manufacturing, alongside Rs 4.943 crore granted to the Central Manufacturing Technology Institute (CMTI) to develop a indigenous laser-based additive manufacturing system.
