Production-Linked Incentive (PLI) brings Telecom manufacturing bases to India – Companies like Samsung, NokiaCisco, Ciena, and Foxconn heading offshore

 

  • According to the government, companies like Ericsson and Nokia want to expand their operations in India. Global companies like Samsung, NokiaCisco, Ciena, and Foxconn have expressed interest in setting up manufacturing bases in India for telecom and networking devices for both domestic and export markets.

According to an official release outlining the status of the ambitious scheme for telecom and networking products that seeks to place India as a global hub of manufacturing telecom gear, most global industry leaders are eager to expand or establish manufacturing bases in India. They are “positive” about the types of incentives proposed under the Production-Linked Incentive (PLI) scheme.

“Companies like Nokia Finland and Ericsson Sweden are looking to extend their global supply chain operations in India. Global telecom companies such as Samsung South Korea, Cisco USA, and Ciena USA, as well as Engineering Manufacturing Services (EMS) companies such as Jabil USA, Foxconn Taiwan, Sanmina USA, and Flex USA, have expressed interest in setting up manufacturing in India for telecom and networking products for both domestic and export markets,” according to the press release.

Indian manufacturers like VVDN Technologies, Dixon (Noida), HFCL, and Coral Telecom have also shown interest in the Rs 12,195 crores PLI scheme notified in February 2021.

About the scheme

The centre’s PLI scheme for telecom and networking goods aims to make India a global hub for telecom equipment manufacturing, including core transmission equipment, Internet of Things (IoT) access devices, 4G/5G next-generation Radio Access Network and wireless equipment, access and Customer Premises Equipment (CPE), other wireless equipment, and business equipment such as switches and routers.

Over the next five years, it is expected that maximum utilization of the scheme funds will result in a total output of around Rs 2.4 lakh crore and exports of around Rs 2 lakh crore.

The scheme is expected to attract about Rs 3,000 crore in investment and create many direct and indirect jobs.

Investors will be rewarded for cumulative sales of up to 20 times their initial investment, allowing them to expand globally, use unused resources, and ramp up production.

The scheme’s primary goal is to counter the massive import of telecom equipment worth over Rs 50,000 crore by bolstering it with ‘Made in India’ goods for both domestic and international markets.

India’s goal is to become a preferred global manufacturing destination for telecom devices and a net exporter of telecom and networking equipment.

With the support of the Invest India team, an ambitious outreach programme is being organized.

According to the release, it will include one-on-one meetings with potential investors, participation in industry association-organized global outreach activities, a different interactive website for applications, and selected vendors for the entire scheme interface.

 

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