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Industry welcomes PLI scheme approval
“The approval of the PLI scheme for telecom equipment manufacturing by the Union Cabinet earlier today, is a significant boost for product manufacturing in the telecom sector. With the launch of 5G technology in the anvil, this will definitely prove to be an impetus for the ‘Make in India’ campaign of the Government and encourage local production including boosting more collaborations and technology transfers in the sector. With the telecom industry going through a very difficult phase, this move of the Government would surely incentivise the telecom service providers by opting for equipment’s manufactured locally savings on a substantial costs relating to imports. While we need to wait and see, as to whether there will be many takers to this scheme, surely it appears that these developments are on the right path towards Atmanirbhar or self-sufficiency.”
Tony Verghese, Partner, J Sagar Associates
“We welcome the implementation of the PLI scheme on telecom equipment. Telecom is the backbone of a digitally connected India and this initiative will further boost local manufacturing and create employment opportunities. India is already the second largest telecom market globally and this will go a long way in making the country a global hub for telecom innovation.”
Lt. Gen. Dr. SP Kochhar, DG, COAI.
This is in response to the approval by the Union Cabinet for a Rs 12195 crore plan to promote local manufacturing and export of telecoms and networking gear. The plan is part of Prime Minister Narendra Modi’s efforts to make India an electronics production hub and to create jobs. It is also aimed at cutting imports, especially from China.
The scheme will offer gear makers annual cash incentives of between 4% and 7% on any increase in sales of locally-made equipment over the next five years, compared with 2019-20 levels.
“I would appeal to all telecoms’ equipment manufacturers, come on India is waiting for you with this scheme, we’ll give you all the help,” India’s telecoms minister Ravi Shankar Prasad told a news conference.
Last year, India launched a $6.65 billion incentive plan to deepen smartphone manufacturing in the country.