The Union Cabinet of India, Chaired by PM Modi, has approved the Production Linked Incentive (PLI) norms for the telecom sector on 17th February 2021.

Points To Note

  • PLI scheme was given for telecom and network equipment manufacturing in a bid to boost the local manufacturing of the components.
  • The scheme on telecom sector will be effective from 1st April 2021.
  • The Department of Telecom now be given the final approval from the Union cabinet of India.
  • Now, Department of Telecom will invite the companies for applications.
  • Ravi Shankar Prasad also said 20000 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.
  • The Telecom manufacturing will be boosted for over five years in order to enhance the production of more than Rupees 2.4 lakh crore.

Objectives

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

About Production Linked Incentive scheme

The Production Linked Incentive scheme was launched by Government of India during COVID-19 Pandemic by March 2020 in a bid to boost the domestic manufacturing. The scheme also seeks to cut down on import bills. It was launched with the aim of giving the companies incentives on incremental sales of the domestically manufactured products. It 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.

Union Cabinet approved PLI scheme for Telecom Sector Union Cabinet approved PLI scheme for Telecom Sector