To boost local production, the government had come up with the Production Linked Incentive (PLI) scheme for telecom equipment makers. Now, the telecom equipment makers are set to receive Rs 400 crore worth of incentives from the government for increasing local production. As India becomes more self-reliant, the need for imports from other nations will go down. According to a Deccan Chronicle report, one or two companies have already received the incentives. Other major players are set to receive it too in a week or so.
The report, quoting a source privy to the development, said that the government is continuously monitoring the manufacturing of all the telecom equipment makers. Some companies had approached the govt to help them with their local manufacturing. Thus, the govt has decided to reward them with Rs 400 crore worth of incentives to boost local production. This will ensure that the companies involved in supplying telecom gear don't have to engage in heavy imports.
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Components Still Being Imported
While many players are now focusing on producing within India, there's still an issue with the components being imported. To deliver a high-quality product, the companies still have to import the components. This needs to change to ensure a completely self-reliant production ecosystem in India which will ensure national security.
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The Indian government needs to provide some support for building components locally too. Reliance Jio, Bharti Airtel, and Vodafone Idea have been too reliant on foreign telecom gear vendors to roll out their network services. This should change in the future if Indian suppliers can deliver high-quality equipment at competitive prices to the telcos.
The PLI scheme for the manufacturing of telecom gear in India was kicked off by the central govt in 2021 with a total outlay of Rs 12,195 crore.
