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  • 18 February, 2021

  • 3 Min Read

Production-Linked Incentive Scheme for the Telecom Sector

Production-Linked Incentive Scheme for the Telecom Sector

  • Aim of the scheme: It will make India a global hub for manufacturing telecom equipment.
  • It will create jobs and reduce imports, especially from China.
  • The focus of the scheme: The scheme will offset the huge import of telecom equipment worth more than Rs 50,000 crore.
  • It will encourage foreign manufacturers and domestic manufacturers to set up production units in India.
  • Coverage: The scheme will cover domestic manufacturing of equipment such as
    • core transmission equipment,
    • 4G/5G and next-generation radio access network and wireless equipment,
    • Internet of Things (IoT) access devices,
    • enterprise equipment such as switches and routes.
  • The scheme will be operational from April 1 and will run for the next 5 years.
  • For the inclusion of MSMEs in the scheme, the minimum investment threshold has been kept at ?10 crores while for others it is ? 100 crore.
  • Further, for MSMEs, It proposes a 1% higher incentive in the first three years.

Significance of the scheme:

  • The scheme may lead to an incremental production of about ?2.4 lakh crore with exports of about ?2 lakh crore over 5 years.
  • Moreover, it may bring in investments of more than ?3,000 crores.
  • With the inclusion of telecom equipment manufacturing under the ambit of PLI schemes, the total number of sectors under such programmes stands at 13.

Source: TH

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