The government hopes that the scheme will bring an investment of more than Rs 3,000 crore and generate employment opportunities on a large scale.
Atmanirbhar Bharat for telecom equipment: The Modi government has approved a Product Linked Incentive (PLI) of Rs 12,195 crore for telecom equipment manufacturing. The decision was taken in a cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday. The government believes that this initiative will give a boost to the self-reliant India campaign and will encourage manufacturing in the telecom sector. This scheme will be effective from 1 April 2021. This will produce about Rs 2.4 lakh crore worth of telecom equipment in the next five years.
Union Communications Minister Ravi Shankar Prasad informed the media about the cabinet decision that the government wants to make India a global powerhouse of manufacturing. For this, the government has taken several important initiatives in view of Ease of Doing.
Prasad said that the cabinet has approved the PLI scheme for telecom equipment manufacturing worth Rs 12,195 crore. The government estimates that in the next five years, there will be a telecom equipment production of Rs 2,44,200 crore from this scheme. Prasad said that the government will soon come up with a PLI scheme to encourage the production of laptops and tablet PCs.
MSME will also get a boost!
This scheme will also encourage local manufacturing in the MSME category. Because the government wants MSMEs to play a major role in the telecom sector and emerge as national champions. This scheme will pave the way for incremental production of Rs 2.4 lakh crore with exports of about Rs 2 lakh crore in the next 5 years. The government hopes to invest more than Rs 3,000 crore from this scheme. Also, large scale employment opportunities will be created in direct and indirect form and the revenue of the government will also increase through tax.
One more step towards ‘Self-reliant India’
The cabinet decision regarding the PLI scheme for telecom equipment manufacturing is another important initiative towards self-reliant India. Global companies to build core transmission equipment, 4G / 5G next-generation radio access network and wireless equipment, access and customer premise equipment (CPE), Internet of Things (IoT) access devices, other wireless equipment and switches, enterprise equipment such as routers in India Will bring you forward
You know the government has taken this step, encouraged by the success of the PLI scheme related to mobile and component manufacturing. The Modi government announced the PLI scheme for mobile and component manufacturing in April 2020 during the COVID epidemic.
What is PLI Scheme?
The Modi government wants to attract companies for productions in India to promote manufacturing in the country and create a global hub. For this, Production Linked Incentive Scheme (PLI) has been started. Under this, the government will give an incentive of Rs 1.46 lakh crore to the companies producing in the country in the next five years. Import costs will be reduced due to production within the country. When goods are produced in the country, employment opportunities will also be created directly and indirectly.
Under this scheme, foreign companies will be encouraged to set up factories in India as well as domestic companies to plant or expand. The PLI scheme is initially for 5 years. In this, companies will get cash incentive. All the emerging sectors such as automobile, networking products, food processing, advanced chemistry, telecom, pharma, and solar PV manufacturing can be taken advantage of this scheme.