Cabinet approved PLI scheme for Telecom Sector

The government of India has approved the Production Linked Incentive (PLI) norms for the telecom sector on February 17, 2021.

Key Facts

  • The approval of the PLI scheme was given for telecom and network equipment manufacturing in a bid to boost the local manufacturing of the components.
  • PLI scheme on telecom sector will be effective from April 1, 2021.
  • The Department of Telecom (DoT) now be given the final approval from the Union cabinet.
  • Now, the DoT will invite the companies for applications.
  • Prasad also said 20,000 jobs are already given by one mobile manufacturer, 1 lakh direct and 3 lakh indirect jobs will be created by a mobile manufacturer next year.
  • Under the PLI scheme, Telecom manufacturing will be boosted for over 5 years in order to enhance the production of more than Rs 2.4 lakh crore.

Objectives of the Decision

  • The Cabinet decision to approve the PLI scheme for telecom sector aims to make India a global hub of manufacturing telecom equipment.
  • The government also aim to make India a hub of 4G/5G Next Generation Radio Access Network, core transmission equipment, and Wireless Equipment as well.
  • This move will also boost the local manufacturing of telecom gear in the domestic market as well as for exports.
  • The scheme will cater to the core transmission equipment, 4G/5G and next-generation radio access network & wireless equipment, Internet of Things (IoT) access devices, access and customer premise equipment (CPE) and enterprise equipment like switches and router.
  • It will also pull the Intellectual Property (IP) and design-led manufacturing in order to make the Indian industry globally competitive.
  • The policy also seeks to boost the research and development pool and talent across India.

Production Linked Incentive (PLI) scheme

This scheme was launched in the March 2020 in a bid to boost the domestic manufacturing. It also seeks to cut down on import bills. The scheme was launched with the aim of giving the companies incentives on incremental sales of the domestically manufactured products. This scheme does not stop any foreign companies to set shop in India. But, it also encourage the local companies to set up or expand the existing manufacturing units.

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