Telecom gear production to get ₹12,195 crore boost

India on Wednesday offered telecom and networking equipment companies incentives worth ₹12,195 crore to boost local manufacturing, seeking to cut the nation’s massive dependence on imports of such gear.

The production-linked incentive (PLI), finalized after consultations with companies and other stakeholders, will reduce the country’s imports of telecom equipment worth over ₹50,000 crore, Ravi Shankar Prasad, minister for telecom, electronics and information technology, told reporters after a meeting of the Union cabinet.

India, which imports 85% of its wireless telecom equipment, is currently preparing to roll out fifth-generation, or 5G, telecom services that will require telecom operators to make heavy investments in network infrastructure. The incentives, along with local demand, are expected to draw foreign companies to set up manufacturing units in India.