“This approval comes in wake of very encouraging success of PLI related to Mobile and component manufacturing, which was announced in April 2020 during the height of Covid pandemic,” said an official statement.
Communications minister Ravi Shankar Prasad said this incentive will make the country an important export hub. The PLI scheme is also expected to boost network gear exports and create a robust components ecosystem, say network vendors, telcos and broadband operators.
According to the scheme, for MSMEs, there will be one percent higher incentive proposed every year for the first three years.
“Minimum Investment threshold for MSME has been kept at Rs. 10 Crores and for others at Rs. 100 Crore,’ said the statement.
The scheme which will generate large direct and indirect employment comes at a time when the sector is awaiting 5G services. A boost to the handset development will now enable India to manufacture 5G ready phones.