India splashes cash to lure telecoms and network kit-makers in need of manufacturing muscle

Wants big players to build locally for locals, then build export capability


India has created a new tech manufacturing investment attraction fund, this time for telecom equipment and enterprise networking kit.

Details of the new Production Linked Incentive (PLI) Scheme for Telecom and Networking Products have not been posted, but previous Indian PLI schemes aimed at consumer electronics and other devices have seen India subsidise the acquisition of land and construction of factories for both foreign and domestic investors.

The new scheme explicitly aims to make India both a producer of products for local consumption, and an exporter.

Apple logo behind broken window

iPhone factory workers riot over unpaid wages in India

READ MORE

The Register understands that this scheme aims to have more 5G and 4G networking kit made in India, along with enterprise hardware such as routers, and perhaps also smaller products like customer premises devices. Investors may find one big customer waiting: Indian carrier Jio Platforms, which says it has designed its own own 5G equipment and plans to both use and sell it.

The scheme has around US$1.6bn of incentives to share.

India’s strategy for such schemes is to make multinational companies aware they’ll have easier access to its market if their kit is locally made. Manufacturers with big investments in China are another target, as it is felt the Coronavirus pandemic and US sanctions have shown that a diverse manufacturing base is highly desirable. China itself is a target, too, as Huawei's pariah status in many nations means carriers will need someone to make the 5G kit they'll need to acquire.

Those propositions will be put to the test from April 1st, when the new scheme comes into effect.

India's last PLI seemingly lured Amazon to its shores and saw Samsung expand its activities. But manufacturers investigating India will also be aware of the December 2020 riots at an iPhone assembly factory near the city of Bengaluru. ®


Keep Reading

Google Cloud forges new passage to India with Tata Communications

Azure and AWS already have same cloud deal, but hey - new friends!

India makes China app ban permanent, forces TikTok to hose out local office

But China's Xiaomi again tops booming smartphone market which just hit record of 100m sales in six months

Amazon to build its own consumer hardware in India, starting with Fire TV sticks

Minister claims investment attraction regime is working, also asks for help getting products from villages into Marketplace

India takes aim at Alibaba with new round of Chinese app bans

43 apps axed, including those helping buyers and sellers of digital tat bazaar

Does a national Digital Intelligence Unit sound a bit sinister? India's new one will co-ordinate action on SMS scams

Maybe it can use the spatial data that India also liberalised yesterday to deliver promise of unplugging rogue operators

India's PM calls for e-waste to enter 'circular economy' while also promoting subsidies to factories that make e-waste

Suggests industry forms a taskforce to do something eventually

India to spend up big on submarine cable to sparsely-populated but strategically-placed remote island group

Population of 64,000 needs better access to e-government services, and there's also four navy bases to consider

China 'firmly opposes' India's new round of app bans, says it has violated trade laws

Left last couple of bans alone but now says national security argument is bogus and calls for mutual co-operation

Biting the hand that feeds IT © 1998–2021