PLI Scheme for Telecom Sector

In News:

The Union Cabinet approved a Rs 12,195-crore Production Linked Incentive (PLI) scheme for domestic manufacturing of telecom and networking products.

• These are switches, routers, radio access network, wireless equipment and another internet of things (IoT) access devices.

About:

• The core component of this scheme is to offset the huge import of telecom equipment worth more than Rs 50,000 crore and reinforce it with ‘Made in India’ products, both for domestic markets and exports.
•  Currently, India imports over 80 per cent of its telecom and wireless networking equipment.
• The total number of sectors under such programmes stands at 13 with the inclusion of telecom equipment manufacturing under the ambit of PLI schemes.

About Production Linked Subsidy Scheme

• The Ministry of Electronics and Information Technology (MeitY)notified the PLI scheme on April 01, 2020.
• It offers a production linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.

• In November, the PLI scheme was expanded to include 12 more sectors such as automobile and automobile components, pharmaceutical drugs, textile products, food products, high efficiency solar photovoltaic modules, white goods such as air conditioners and LED bulbs, and speciality steel products.

• It will extend an incentive of 4% to 6% on incremental sales (over a base year) of goods manufactured in India and covered under target segments.
• Aims –
  •  All the sectors included under the various PLI schemes are mostly labour intensive and aim to attract global manufacturing giants into the Indian manufacturing space.
  • All the sectors chosen under PLI schemes are also a part of the government’s plan to present India as an alternative destination to China for setting up manufacturing hubs.
  • The total outlay on PLI schemes in covered sectors over the next five years would be Rs 1.97 lakh crore.
• Benefits:
  • It would tremendously boost the electronics manufacturing landscape and establish India at the global level in the electronics sector.
  • It will attract big foreign investment in the sector and open tremendous employment opportunities.
  • In the coming five years, the country hopes to have incremental production of Rs 2.44 lakh crore and export worth Rs 1.95 lakh crore (from this scheme).
  • Direct and indirect employment would be provided to nearly 40,000 people, while tax revenues of up to Rs 17,000 would be generated.

Source :IE