According to the latest information, the Indian market is soon set to receive an investment of about Rs 3,300 crores from 31 domestic and multinational companies for four years. This huge donation comes under the ambitious production-linked incentive or PLI scheme which is aimed at employing as many as 40,000 individuals in the telecom sector.
This incentive package was unveiled early this year and comes after a proposal from as many as 31 companies that included 16 micro, small and medium enterprises (MSME) and 7 multinationals and 8 domestic players have been approved by the telecom department (DoT).
Speaking about the multinationals we have the likes of Nokia Solutions and Networks, Foxconn Technology, Flextronics Technologies, Commscope, and Jabil Circuit. Additionally, HFCL, Tejas Networks, VVDN Technologies, Dixon Electro Appliances, and state-run ITI are the homegrown companies declared eligible under the scheme by DoT.
The scheme is expected to facilitate the production of nearly 1.82 lakh crore, and investment of about Rs 3,345-crore in the telecom sector for four years. This will create additional employment for more than 40,000 people in the sector.
This plan was originally launched by the Centre in April 2021 and laid an outlay of Rs 12,195-crore to promote networking equipment by incentivising incremental investments by domestic and foreign companies.
With the new scheme, the central government is also aiming to create “global champions” out of India that will have the potential to grow and scale capabilities further to penetrate supply chains worldwide.
In November 2020, the Central Cabinet approved the PLI scheme to boost local manufacturing across 10 sectors.
