India to be major exporter of telecom equipment in the next two to three years: Ashwini Vaishnaw

India is expected to become a major exporter of telecom equipment in the next two to three years, according to communications minister Ashwini Vaishnaw. 

In December 2022, 42 companies including Nokia, Samsung, Jabil, HFCL and Tejas Networks, among others which got approval for the Production Linked Incentive (PLI) and Design-Linked Incentive (DLI) schemes for the domestic manufacturing of telecom and networking equipment. 

Vaishnaw said that the country today is the second-largest manufacturer of mobile phones in the world at the Digital India Awards. 

Government efforts

The government, in February 2021, introduced the PLI scheme for the manufacturing of telecom and networking equipment with an outlay of INR 12,195 crore over five years. Under the scheme, 31 companies were approved to manufacture telecom equipment in June 2022.

On top of that, the government amended the existing scheme to include design-led manufacturers in it, allowing companies registered under the PLI scheme to add more products and apply under the DLI scheme with an additional incentive of 1%. Media reports said that the government has allocated INR 4,000 crore as incentives out of the total outlay of INR 12,195 crore, for the DLI scheme. 

Vaishnaw also said that the government has allocated INR 52,000 crore to improve last-mile 4G and 5G connectivity across the country. 

Way forward

The rollout of 5G will enable smartphone manufacturers to increase their capacities in the country, leading to higher employment, and economic contribution. 

Source: Financial Express