Globally Telecom and Networking Products exports represent an US$100 billion market opportunity, which can be exploited by India
India’s aims of taking leads in the sector of 5G deployment may come soon true as the 5G Test Bed being indigenously developed here may start offering testing and integration of software and hardware come this October. It is to be note here that India’s 5g test Bed was announced back in 2018 and a total outlay of more than Rs 224 crore was announced for the same.
The motto of the same, as was announced, is to help Indian players in the telecom industry validate both hardware and software encompassing the 5G domain. Once this test bed is launched, India will be counted among the likes of US, the UK, China, Sweden , Japan, the European Union, Finland, Thailand and South Korea.
Indian Institute of Technology (IIT) Madras, IIT Delhi, IIT Hyderabad, IIT Bombay, IIT Kanpur, IISc Bangalore, Society for Applied Microwave Electronics Engineering and Research (SAMEER), and Centre of Excellence in Wireless Technology (CEWiT) are the eight institutes and academia that are said to be collaborating for the project.
A recent repot by the Economic times noted that the government has already Rs 45 crore during 2020-21 for the project. An amount of approximately Rs three crore has been utilized from the same.
PLI scheme for telecom and networking products recently got approved
The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has recently approved Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs 12,195 crore. It is expected that scheme will bring more than Rs. 3,000 crore investment and generate huge direct and indirect employments.
This new policy has announced an investment threshold of Rs 10 crore for MSME with incentives from seven per cent to four per cent and Rs 100 crore for others with incentives from 6% to four per cent over 5 year above Base Year. The applicants with higher investments than specified threshold under MSME and Non MSME categories will be selected through transparent process. Globally Telecom and Networking Products exports represent an US$100 billion market opportunity, which can be exploited by India.
The core component of this scheme, as per the govt of India, is to offset the huge import of telecom equipment worth more than Rs. 50 thousand crores and reinforce it with “Made in India” products both for domestic markets and exports.
This scheme, as per the estimates of the government of India, will lead to incremental production of around Rs 2.4 Lakh Crores with exports of around Rs2 Lakh Crores over five years. It is expected that scheme will bring investment of more than Rs 3,000 crore and generate huge direct and indirect employment and taxes both.