The Production Linked Incentive (PLI) schemes for several sectors have been a big boost for the Indian economy as it has helped in generating jobs and also brought in significant investments in the infrastructure level. Now, according to an ET Telecom report, the Department of Telecommunications (DoT) has received over 26 applications from several companies, including Samsung, to be a part of the telecom equipment and design PLI scheme.
Out of the 26 applications, 14 applications have come for the second leg of the telecom equipment PLI scheme, while the remaining 12 have come for the design-linked manufacturing plan. Samsung is the new entry into the list. It also makes sense as Samsung was reportedly in talks with the government over being a part of the PLI scheme for the telecom sector.
Airtel Deal Sealed it for Samsung to Manufacture Locally in India
Now that Samsung is working with both Bharti Airtel and Jio in India, it would make better sense for the company to manufacture locally in the market. Further, Samsung could export from India to other foreign nations. The publication's report mentions that the exact number of new applicants and names couldn't be ascertained.
The DoT had announced in 2021 that the telecom equipment PLI scheme be worth over Rs 12,195 crore and would be spread over a five-year period. It is a good thing for India in the long run as most of the telecom equipment would be built within the country, keeping security in mind. Further, there would be more and more jobs as the companies expand their manufacturing units and bring in newer technology to work with. The aim of the Modi government is to ensure that India becomes self-reliant and loses its dependence on countries such as China, from where most of the manufactured goods and equipment are brought in.
It is worth noting that Samsung is also a part of the PLI scheme for smartphone manufacturing in India.