New Delhi, Nov 11 (PTI) Automobile industry will be the biggest beneficiary of the government's Production Linked Incentive (PLI) scheme, Federation of Automobile Dealers Associations (FADA) said on Wednesday.

Welcoming the announcement by the government to give Rs 2 lakh crore worth production-linked incentives for 10 sectors to boost domestic manufacturing, FADA said the step will also make the Indian auto industry more competitive globally, improve export and will make production better in economies of scale.

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"Automobile Industry will be the biggest beneficiary with Rs 57,042 crore outlay over next 5 years and out of the 10 key chosen sectors," FADA President Vinkesh Gulati said in a statement.

Stating that the automotive industry is a major economic contributor in India, he further said,"The PLI scheme will make the Indian automotive industry more competitive and will enhance globalisation of the Indian automotive sector."

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This will also improve export and will make the production better in economies of scale, he added.

"With increasing auto production and the government giving incentives, I am sure that our principals (manufacturers) will trickle down the benefits to the end customers. This will therefore help in demand generation and help us in reviving the economy thus making us reach our prime minister's vision of USD 5 trillion economy," Gulati said.

The Union cabinet on Wednesday approved giving PLI to sectors such as auto, pharma, telecom, textile, food product and solar PV.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)