PLI Scheme for Telecom and Networking Products Approved by Union Cabinet

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Globally Telecom and Networking Products exports represent an US$100 billion market opportunity, which can be exploited by India

The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has 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.

“Through this policy, India will move towards self-reliance. By incentivizing large scale manufacturing in India, domestic value addition will increase gradually. Provision of higher incentive to MSME will encourage domestic telecom manufacturers to become part of the global supply chain,” read an official release.

Support under the Scheme will be provided to companies/entities engaged in manufacturing of specified telecom and networking products in India. Eligibility will be further subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods net of taxes (as distinct from traded goods) over the Base Year 2019-2020. The cumulative investment can be made at one go, subject to annual cumulative threshold as prescribed for four years being met.

There will be a minimum 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.

“With this scheme, India will be well positioned as a global hub for manufacturing of Telecom and Networking Products. Incremental production around Rs 2 Lakh crore is expected to be achieved over five years. India will improve its competitiveness in manufacturing with increased value addition,” read Ministry of Communications’ release.

It continued,”In continuation of “Atmanirbhar Bharat-Strategies for enhancing India’s Manufacturing capabilities and enhancing exports”, this scheme is part of the umbrella scheme approved by the cabinet in November 2020 for implementation of PLI under various Ministries/ Departments including Department of Telecommunications (DoT).”

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