The Indian mobile economy is growing at a fast pace. The liberal policies of the Government of India along with strong consumer demand have been quite instrumental in boosting the nation’s telecom industry.
Recently, the Minister of State of the Ministry of Communications has set in motion the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products. The decision will play a major role in reducing India’s dependence on other countries for the import of telecom and networking products.
Second Largest Telecom Market
India is the 2nd largest telecom market in the world with 765.1 million broadband subscribers. The telecom sector provides employment to 4 million people in India. With the regular expansion in subscriber base, there has been a lot of investment and development in the sector.
Boosting domestic manufacturing in uy/g8Telecom and Networking Products
The PLI Scheme has been initiated with the objective to boost domestic manufacturing in telecom and networking products by incentivising incremental investments and turnover with a total outlay of ₹ 12,195 crores.
As per scheme guidelines, a total of 31 companies have been found eligible and are being given approval under the Production linked Incentive (PLI) Scheme of the Department of Telecommunications, Ministry of Communications. These companies entail 16 MSMEs and 15 Non-MSMEs.
Emerging opportunities for the people
As per the commitments given by applicants, the 31 applicants are expected to invest ₹ 3,345 crores in the next 4 years. This will help in generating incremental employment of more than 40,000 people with an expected incremental production of around ₹ 1.82 lakh crore. Further, the scheme is expected to boost the research & development of new products in the telecom sector.
The scheme could do a great job in creating global champions out of India who have the potential to grow in size and scale with the help of cutting edge technology and penetrating the global value chains. Telecom products play an important role in supporting the larger vision of “Digital India”. Therefore, the government has fast-tracked reforms in the telecom sector and continues to be enthusiastic in providing room for the growth of telecom companies.