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d) Key Policies The Government of India encourages foreign investment in the automobile
sector and has allowed 100% foreign direct investment (FDI) under the automatic route. Some of the recent initiatives taken by the Government of India are –
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Battery Swapping Policy: The biggest highlight of the new budget for the automobile sector was the announcement of the new battery-swapping technology. This will benefit
the entire EV industry, and the development will enable OEMs, charging
infrastructure companies, and EV component manufacturers to install battery-swapping stations across India.
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PM Gati Shakti Yojna: The Finance Minister further announced that the country's National Highways would be expanded by 25,000 km in 2022-23 under the Prime Minister's Gati Shakti Plan. An allocation of Rs 20,000 crore for infrastructure projects gives the commercial vehicle sector a much-needed boost as it was severely affected due to the pandemic.
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National Logistics Policy The Policy lays down an
overarching interdisciplinary, cross- sectoral, multi-jurisdictional and comprehensive policy framework for the logistics sector. The policy complements the PM Gati Shakti National Master Plan. While PM Gati Shakti National Master Plan is aimed at integrated
infrastructure development, the National Logistics Policy is envisaged to bring efficiency in logistics services and human resources through streamlining processes,
regulatory framework, skill development, mainstreaming logistics in higher education and adoption of suitable technologies.
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