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



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.


  • 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.


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