The INR 12,195 crore PLI scheme for telecom equipment manufacturing is “a big positive” that will spur local production, generate employment, and position the country as a global hub for innovation.
February 18, 2021
The Govt. of India has unveiled details of the INR 12,195-crore production-linked incentive (PLI) scheme for telecom equipment that’s expected to lead to investment of more than INR 3,000 crore and local production worth INR 2.4 lakh crore, of which exports are pegged at INR 2 lakh crore.
According to the media reports, government hopes to have incremental production of INR 2,44,200 crore in the sector, exports worth INR 1,95,360 crore, 40,000 new jobs and INR 17,000 crore worth of tax revenue in the coming five years.
The range of telecom equipment covered under the scheme includes routers, Internet of Things (IoT) access devices, radio access networks for 4G and 5G and wireless equipment, with the main aim being to boost exports. Currently, equipment worth about INR 50,000 crore is imported, mainly from China.
Industry body COAI lauded the move saying telecom is the backbone of a digitally-connected India and the initiative will further boost local manufacturing and create job opportunities.
The PLI scheme for telecom equipment manufacturing will be operational from April 1, 2021. It aims to make India a global hub of manufacturing of telecom equipment including core transmission equipment, 4G/5G next-generation radio access network and wireless equipment, access and Customer Premises Equipment (CPE), Internet of Things (IoT) access devices, other wireless equipment and enterprise equipment like switches and routers.