Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it

GS-3

PLI SCHEME FOR TELECOM AND NETWORKING PRODUCTS

The Union Cabinet has approved the PLI Scheme for Telecom and Networking Products.

Important points:

  • This scheme is part of the umbrella scheme approved by the cabinet in November 2020 for implementation of Production Linked-Incentives (PLI) under various ministries/departments.
  • This is in continuation with the ‘Atmanirbhar Bharat’ strategies for enhancing India’s manufacturing capabilities and exports.
  • Support under the Scheme will be provided to companies/entities engaged in the manufacturing of specified telecom and networking products in India.
  • Eligibility will be further subject to achievement of a minimum threshold of cumulative incremental investment over a period of four years and incremental sales of manufactured goods net of taxes (as distinct from traded goods) over the Base Year 2019-2020.
  • The cumulative investment can be made at one go, subject to annual cumulative threshold as prescribed for four years being met.
  • There will be a minimum investment threshold of Rs.10 crore for MSME with incentives from 7% to 4 % and Rs. 100 crore for others with incentives from 6% to 4% over 5 year above Base Year.

Benefits:

  • With this scheme, India will be well positioned as a global hub for manufacturing of Telecom and Networking Products.
  • Incremental production of around Rs. 2 Lakh crore is expected to be achieved over 5 years.
  • India will improve its competitiveness in manufacturing with increased value addition.
  • It is expected that the scheme will bring more than Rs. 3,000 crore investment and generate huge direct and indirect employments.
  • By incentivizing large scale manufacturing in India, domestic value addition will increase gradually.
  • Provision of higher incentive to MSME will encourage domestic telecom manufacturers to become part of the global supply chain.

SOURCE:PIB,THE ECONOMIC TIMES

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