Cabinet Approves PLI Scheme For Telecom Sector: Key Highlights Of The Meeting

The Cabinet has sanctioned the Production-Linked Incentive (PLI) scheme worth ₹12,195 crores on Wednesday. Union Minister Ravi Shankar Prasad stated that the purpose of this scheme is to manufacture telecom equipment. The Government is aiming to reduce current imports in the telecom sector worth Rs. 50,000 Crores.

The cabinet is focusing on strengthening MSME development. After the Cabinet Meeting, Communication Minister Ravi Shankar Prasad stated that the Government is attempting to make India an international powerhouse for manufacturing, and has successfully produced a favorable environment for doing business without trouble.

According to Prasad, the government anticipates that the scheme will result in incremental production of the telecom equipment by ₹2,44,200 crore in the country in the upcoming five years. Center is also having a goal to generate exports worth Rs 1,95,360 crore, 40,000 employment opportunities, and tax revenue worth 17,000 in the next five years". The PLI scheme for the telecom sector will come into effect from 1st April 2021. The Government is also planning to initiate a PLI Scheme to encourage the production of Tablets, Laptops, and Personal Computers.

The approval of the PLI scheme for the telecom sector appears to be a hope for the shrinking economy of the country. Although, it is yet to be seen whether the scheme succeeds in its operation or not.