Telecom equipment makers in India are poised to receive a substantial boost in the form of incentives worth Rs 400 crore from the government, as part of the Production Linked Incentive (PLI) scheme. This move is expected to further encourage local production, minimizing the reliance on imported components and contributing to India’s self-sufficiency in telecom gear manufacturing.
Incentives Allocated to Strengthen Local Production
As per a Deccan Chronicle report, a few companies have already received these incentives, and other major players are anticipated to benefit within the coming weeks. The government is actively monitoring the manufacturing activities of telecom equipment makers, responding to requests from companies seeking assistance in enhancing local production.
The Rs 400 crore incentives aim to support and reward companies committed to manufacturing telecom equipment domestically. By reducing the need for heavy imports, this initiative aligns with the broader goal of making India self-reliant in the production of critical technology infrastructure.
Addressing Challenges in Component Imports
Despite the growing emphasis on local production, there remains a challenge with the importation of components. Companies are still reliant on imported components to deliver high-quality products. To establish a comprehensive and self-reliant production ecosystem in India, there is a need for the Indian government to extend support for the local manufacturing of these essential components.
Major telecom players such as Reliance Jio, Bharti Airtel, and Vodafone Idea have historically depended on foreign telecom gear vendors for their network services. The ongoing incentives and support for local manufacturing are expected to gradually shift this dynamic, with Indian suppliers striving to provide high-quality equipment at competitive prices to domestic telcos.
PLI Scheme Driving Indigenous Manufacturing
The Production Linked Incentive scheme for the manufacturing of telecom gear in India was initiated by the central government in 2021, with a total outlay of Rs 12,195 crore. This scheme underscores the government’s commitment to fostering indigenous manufacturing capabilities, reducing external dependencies, and bolstering national security.
