Budget 2026 Boosts Auto PLI to ₹5,939 Crore, No Policy Changes Announced

• Union Budget 2026-27 allocates ₹5,939.87 crore for the Auto PLI scheme, a significant increase from previous estimates, signaling continued government support.
• Finance Minister Nirmala Sitharaman did not announce new policy changes for the auto PLI scheme during her budget speech.
• The auto PLI scheme, with a total outlay of ₹25,938 crore, targets Advanced Automotive Technology (AAT) vehicles and components, attracting ₹35,657 crore in investment and creating 48,974 jobs by September 2025.
• Other schemes like PM E-DRIVE (₹10,900 crore) and PM e-Bus Sewa (₹3,435.33 crore) continue to support EV demand and public transport electrification.
• The overall PLI initiative across 14 sectors has seen cumulative investments of ₹2 lakh crore and incremental production of over ₹18.7 lakh crore by September 2025.

Why It Matters: Budget 2026 significantly increases auto PLI allocation to ₹5,939 crore, reinforcing fiscal backing for advanced automotive manufacturing.