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Atmanirbhar Bharat: DPIIT prepares blueprint for making India an auto components, AC manufacturing hub

economy | Aug 11, 2020 12:23 PM IST

Atmanirbhar Bharat: DPIIT prepares blueprint for making India an auto components, AC manufacturing hub

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The Department of Promotion of Industry and Internal Trade (DPIIT) has identified 20 sectors as champion sectors to boost manufacturing

The Department of Promotion of Industry and Internal Trade (DPIIT) has proposed short- and-long-term measures to turn Indian into a manufacturing hub for auto components and air conditioning, sources told CNBC-TV18. The DPIIT has held extensive discussions with industry bodies and the concerned ministries as part of the overall push to manufacturing in the 20 'champion' sectors, which is part of the Modi government's call for Atmanirbhar Bharat.

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In the auto ancillary or components sector, the aim is to target 5 percent of the global auto component trade and a four-fold increase in exports.
In the short term, the DPIIT suggests using the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), a scheme under the Ministry of Electronics and Information Technology (MEITY) for Auto Electronics and Electric vehicles. The scheme gives a 25 percent incentive on CAPEX for electronic components.
The long term plan suggested by DPIIT is to bring auto components under the production linked incentive (PLI) scheme and evaluate local content and bring in value addition of automobile companies.
In the air conditioners space, the aim is to reach $1 trillion dollar revenue while creating 2.5-3 lakh jobs. The short term plan is to hike customs duty on finished ACs and in a phased manner increase customs duty on components and also bring quality control orders on ACs and components.
Additionally, the long term plan is to create industrial clusters near ports, make some changes to public procurement for air conditioners and revise AC guidelines under the Bureau of Energy efficiency on frequency.
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