India government on Wednesday announced production linked incentive scheme for 10 sectors including telecom and networking products.
The scheme, which is aimed at enhancing the manufacturing sector, would entail an expenditure of about Rs 2 lakh crore, said Finance Minister Nirmala Sitharaman.
Accordingly, the scheme is expected to attract foreign players, boost production and generate employment in the country. The proposed outlay of INR 12,000 crores for telecom and networking equipment will enhance local manufacturing.
Earlier, India government rolled out a similar scheme for electronics manufacturing sector, particularly for mobile phone manufacturing, to curb increasing imports from China and other countries.
The concerned sectors will include Advance Chemistry Cell Battery, electronic products, automobiles and auto components, pharma, telecom and networking products, textile, food products, white goods and speciality steel.
“We are yet to receive details of the scheme from the DoT. We appreciate the proposed outlay of INR 12,000 crore for telecom and networking equipment. The Government would have designed the scheme is order to enhance demand for telecom equipment from the local market and offer incentive to increase exports from India,” SP Kochhar, director general of COAI, said.