The union government has issued a third deadline extension for applications for production-linked incentive (PLI) for design-led manufacturing in telecom and networking products. Announced as an extension to the government's ₹12,195 crore PLI scheme for the telecom sector announced on February 24, 2021, companies can now apply for design-led manufacturing incentives by August 25. This move is seen as an effort to increase competitiveness in the telecom and networking product market.
The PLI scheme for design-led manufacturing in telecom and networking devices was added to the scheme on June 20. Under the scheme, eligible applicants have a minimum investment threshold of ₹10 crore for micro, small and medium enterprises (MSMEs) and ₹100 crore for non-MSME applicants. MSMEs are allocated ₹2,500 crore as part of the total PLI benefits in the telecom sector.
Around 100 million 5G devices are expected to be sold in India in 2023. This is due to the high demand for 5G services among consumers and device manufacturers shipping more 5G-compatible phones to the country.