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This success of the telecom sector is attributed primarily to the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products.
About the scheme
- Nodal Ministry: Ministry of Communications
- Type: Central Sector Scheme
- Objectives: Enhancing domestic manufacturing capabilities and making India a global hub for telecom equipment production.
- Eligibility: Global companies; Domestic companies or MSMEs fulfilling specified Global Manufacturing Revenue criteria.
- Benefits: Financial incentives to manufacturers based on their incremental sales from base year for products manufactured in India.
- Financial incentive
- Base Year: FY 2019-20
- Rate of incentive: 4-7% for MSMEs and 4-6 % for others.
- Additional 1% incentive under Design-led PLI for products that are designed and manufactured in India.
- Products eligible for financial incentive: Core Transmission Equipment; 4G/5G, Next Generation Radio Access Network (RAN) and Wireless Equipment; Switches, Routers, etc.
- Tenure:
- For making investments: April 2021 up to FY 2024-2025
- For availing financial Incentives: FY 2021-22 to FY 2025-26
- Project Management Agency: Small Industries Development Bank of India (SIDBI)
Background of PLI Scheme
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