Nikhil Dhaka, Vice President, Primus Partners, highlights that the 20% reduction in the allocation for the production-linked incentive (PLI) scheme for automobiles and auto components in FY26 could delay the development of India’s electric vehicle (EV) sector and hinder cost reductions. The revised allocation of ₹2,819 crore for FY26, down from ₹3,500 crore in FY25, will likely mean that only larger players in the industry will benefit from the incentives, just as seen in FY25. The total PLI scheme budget stands at ₹25,938 crore for the period from FY23 to FY27.