The Centre has approved Production Linked Incentive (PLI) scheme for the Telecom and Networking Products, to promote manufacturing, with a budgetary outlay of Rs 12,195 crore. It intends to promote manufacture of Telecom and Networking Products in India and proposes a financial incentive to boost domestic manufacturing, and attract investments in the target segments to encourage Make in India.
The scheme will also encourage exports of telecom and networking products Made in India. The government will provide support to companies and entities engaged in manufacturing of specified telecom and networking products in India. Eligibility will be further subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years, and incremental sales of manufactured goods net of taxes over the Base Year 2019-20.
India can exploit the global telecom and networking products exports, which represents a US$100 billion market opportunity. The industry can augment capacities by attracting large investments from global players and encourage promising domestic champion companies to seize the emerging opportunities and become big players in the export market.
Moreover, in the continuation of Atmanirbhar Bharat strategies for enhancing the country’s manufacturing capabilities and enhancing exports, this scheme is part of the umbrella scheme which was approved by the Cabinet in Nov. 2020 for the implementation of PLI under various ministries and departments, including the Department of Telecommunications (DoT).
Also Read: Hyundai to focus on electrification, autonomous, connected technologies to fuel growth in India
There will be a minimum investment threshold of Rs 10 crore for MSME with incentives from 7% to 4% and Rs 100 crore for others with incentives from 6% to 4% over five year Base Year. Applicants with higher investments than specified threshold under MSME and Non-MSME categories would be selected through transparent process. India, with this scheme, will be well positioned as a global hub for manufacturing of Telecom and Networking products. Incremental production around Rs 2 lakh crore is expected to be achieved over five years. India will improve its competitiveness in manufacturing with increased value addition.
The government expects that the scheme will bring more than Rs 3,000 crore investment and generate huge direct and indirect employments. And through this policy, the country will move towards self reliance.