The new PLI guidelines envisage providing incentives of $1.67 billion over a five-year period. Companies like Samsung, Nokia, Ericsson, Reliance and a host of others are expected to sign up for this scheme.
In a first under the scheme, $133 million out of this amount has been set aside for micro, small and medium enterprises (MSMEs) to encourage the development of an indigenous supplier base for components that go into such equipment.
The development of this eco-system will ensure that the country becomes almost fully atma nirbhar (self-reliant) in this sector, a la, the automobile sector, which followed this route in the footsteps of Maruti Suzuki.
The scheme, which will run from the current fiscal to 2025-26, is expected to lead to direct investments of more than $400 million and generate thousands of direct and indirect jobs. “The full utilisation of the scheme funds is likely to lead to production of around Rs 2.4 lakh crore ($33 billion), with exports of Rs 2 lakh crore ($27.5 billion) over five years," a statement by the ministry of communication said. “Manufacturers with products using Indian technology are encouraged to apply,” it added.