PLI Scheme Announced to Promote Innovation in Telecom Industry: COAI

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The Production Linked Incentive (PLI) scheme of Rs 12,195 crore announced for the telecom equipment manufacturing will boost ‘innovation’ in the telecom industry. It will give way to more employment opportunities, increase local production, and poise India to serve as a global hub for innovation. The Cellular Operators’ Association of India (COAI) has praised the government's move saying that telecom is the backbone of the digital infrastructure in India and will help the country stay connected.

PLI Scheme Will Lead to Production of Rs 2.44 Lakh Worth of Equipment

According to a PTI report, the PLI scheme for the telecom equipment manufacturing will generate the production of equipment worth Rs 2.44 lakh as per estimates. The PLI scheme is expected to generate employment directly or indirectly for up to 40,000 people in the country.

The scheme will be operational from April 1, 2021. The scheme aims to make India the global hub for manufacturing of telecom equipment including 4G and 5G radio access network (RAN) products, Customer Premises Equipment (CPE), other wireless equipment such as routers, and Internet of Things (IoT) devices.

Emerging Markets TMT Leader, Prashant Singh from EY said that it is a ‘masterstroke’ to enhance India’s contribution to the global value chain. He said that this move would boost the micro, small, and medium enterprises (MSME) market concentrating in the digital environment. Further, he said that the PLI scheme will attract foreign investments and will help India move towards its goal of a trillion-dollar economy.

According to Singh, the scheme is a move to advance the ‘vocal for local’ agenda of the government. Tony Verghese, Partner at J Sagar Associates, said that the scheme would be a major boost for ‘product manufacturing’ in the telecom industry. With 5G going to launch soon, this scheme will prove to be an ‘impetus’ for the government's 'Make in India’ initiative.

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