The Union Cabinet on February 17, 2021 approved Production Linked Incentive (PLI) Scheme for Telecom and Networking Products with a budgetary outlay of Rs. 12,195 crore.
- This scheme is part of the umbrella scheme approved by the centre in November 2020 for implementation of PLI under various Ministries/ Departments including Department of Telecommunications (DoT).
- The Production Linked Incentive (PLI) Scheme intends to promote manufacture of Telecom and Networking Products in India and proposes a financial incentive to boost domestic manufacturing and attract investments in the target segments of telecom and networking products in order to encourage Make in India.
- The scheme will also encourage exports of telecom and networking products ‘Made in India’.
- Support under the Scheme will be provided to companies/entities engaged in manufacturing of specified telecom and networking products in India.
- There will be a minimum investment threshold of Rs.10 crore for MSME with incentives from 7% to 4 % and Rs. 100 crore for others with incentives from 6% to 4 % over 5 year above Base Year (2019-2020).
- Globally Telecom and Networking Products exports represent an US$100 billion market opportunity, which can be exploited by India. With support under the scheme, India will augment capacities by attracting large investments from global players.
