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India Gets Big Telecom Production Boost with PLI Scheme




The department of telecommunication in India has launched a new scheme called PLI (Production Linked Incentive) scheme. It was launched in April 2020. The aim of this scheme is to incentivize the producers of the telecom sector. It has really given a boost to telecom gear production in India as many of the 5G equipment production companies have started their production in India one of those is Samsung.


Indian telecom sector is going to get a benefit with this scheme. In the earlier days if we talk about the Telecom gear manufacturer then it was all China Huawei and ZTE. The entire world was susceptible about these two companies due to security breaches and were unwillingly taking the equipment of these companies. With the start of the production facilities in India it will give the option to the Telecom players to buy Telecom gears and also will reduce the prices in India.



Due to the PLI scheme, Nokia has set up its manufacturing unit in India and now it's doing all 5G equipment production from India only. The next Big player in the sector is Reliance Jio which has also started manufacturing 5G equipment. Along with Jio, Tata and Ericson are also in the pipeline to start 5G equipment manufacturing. So with this there are 4 companies in India which will manufacture 5G gears.


The Other benefit of this scheme the major gain India has is that Samsung has fully shifted its operations from China to India. Samsung will build the smartphone displays in its factory in Noida and it will be not only for Samsung devices but for all other handsets also.


So we can say telecom sector production is shifting very fast from China to India.


Reference:

https://www.meity.gov.in/esdm/pli


https://indianexpress.com/article/explained/what-is-pli-scheme-which-sectors-will-be-under-it-7001985/


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