Budget 2024 Sees High Allocation For Auto PLI, Drastic Cut In FAME Subsidy

The Interim Budget 2024 has reduced the subsidy under the Scheme for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India - (FAME - India).

The revised allocation for FY23 was reduced to Rs 4,807 crore from the Rs 5,172 crore budgeted last year, according to the budget document. But more importantly, the budgeted allocation has been nearly halved for the financial year 2024–25 to Rs 2,671 crore.

The budget has also provided an outlay for the Production Linked Incentive scheme for automobiles and auto components. The budgeted allocation provided for fiscal 2025 stands at Rs 3,500 crore, up from the revised estimate of Rs 484 crore for fiscal 2024.