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flag India doubled auto PLI funding to ₹5,940 crore in 2026-27 budget, but strict rules excluded startups, sparking sector backlash.

flag The Union Budget 2026-27 increased the auto PLI scheme allocation to ₹5,940 crore, doubling previous funding, though it lacked bold new incentives for vehicle adoption. flag Despite attracting ₹35,000 crore in investments and boosting electric vehicle production, the scheme’s strict criteria excluded startups like Ather Energy, prompting calls for a dedicated innovation window. flag The budget also allocated ₹40,000 crore to electronics PLI, supporting a 146% production rise since 2021. flag Overall, PLI schemes across 14 sectors total ₹1.97 lakh crore, with ₹2 lakh crore in investments and ₹18.7 lakh crore in incremental output. flag The auto sector reacted negatively, with the Nifty Auto Index falling over 1% on the announcement.

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