The Ministry of Communications’ approval of 42 businesses, including 28 MSMEs, under the PLI Scheme for Telecom and Networking Products, is a major step towards Prime Minister Shri Narendra Modi’s vision of Atmanirbhar Bharat. Of those, 17 companies have asked for an additional 1% incentive based on standards for design-led production. These 42 businesses have invested Rs 4,115 crores (see annexe). This is expected to result in higher sales of Rs 2.45 lakh crores throughout the course of the scheme and the creation of more than 44,000 new employees.
In an effort to strengthen the domestic value chain, the Union budget for FY2022-23 included the Design-led PLI Scheme for Telecom and Networking Devices. For products designed and produced in India, it granted an additional 1% incentive on top of the ones currently in place. For the Design-led PLI Scheme, which will be implemented in June 2022, design-led businesses and others were urged to submit concepts. Starting on April 1, 2022, the PLI Scheme will provide incentives for a period of five years.
It allowed for the businesses that already took part in the PLI scheme for telecom and networking products to add additional products and submit applications for the design-led PLI programme. Additionally, they benefited from a one-year addition to the PLI scheme’s five-year duration. There were 13 new applicants and 22 businesses that made use of the opportunity to migrate during their first year.
The government of India’s special attempts to stimulate the production of telecom equipment have received a heated response from both domestic and foreign businesses, demonstrating the initiatives’ immense potential. India is about to take over the design and production of telecom and networking equipment.