Incentives are being provided on a wide range of telecom and networking equipment, including core transmission equipment, 4G\/5G equipment, next-generation radio access network and wireless access equipment, customer premises equipment, internet of things (IoT), access devices, switches, and routers etc.
As per provisional data reported by DoT, Telecom equipment manufacturers have produced products worth more than INR 9,000 crores with an investment of close to 420 crores and generated 4938 jobs post-implementation of the scheme. The production and investment have been so far been driven by existing companies who were able to undertake expansions.
While some of the companies & including MSMEs have contributed to the same, however, these companies have been approaching DoT to extend the scheme period by another year. A similar extension has been given in some of the other PLI schemes recognizing the fact that greenfield projects involve a gestation period and there is a delay in procurement of capital goods due to the impact on the global supply chain.
The government is examining the industry request to extend the scheme period, tweak some of the rules under the existing scheme, incentivise local design or onboard new companies with a balanced budget. However, there is a need to think towards the next set of reforms to boost the growth of the sector as it is the backbone for digital transformation & launch of the much-awaited 5G in India. Suggestions which the government may evaluate:
- Introduction of the gestation period for investment allows new companies to set up the requisite infrastructure for commencing production. Similar provisions are there under the PLI scheme introduced for other sectors as well. This will allow a level playing field for Greenfield and brownfield projects<\/li>
- Telecom equipment has high design costs requiring a majority of investment in R&D in the initial phases of design. However, an emphasis on R&D appears to be missing under the scheme and contrarily the R&D expenditure has been capped at 15% of the total investment. The capping ignores the actual expenditure requirement in the sector and the same needs to be lifted in consultation with the industry. In fact there may be a consideration given to how to further incentivize the R&D and support players ready to invest more in R&D for future technologies<\/li>
- The maximum benefit under the scheme has been capped at the maximum sales turnover which is 20 times of the capital commitment limits or maximum sales turnover provided by the companies under the application, whichever is lower. Due to uncertainties and changes in technology etc, there is likely to be variation and this barrier may disincentivize expansions by the companies<\/li> <\/ul>
Long term considerations
<\/strong>
Government is already vigilant of the dynamic nature of the telecom sector and the evolving technology. Thus, to meet the objective of net-zero imports, the government should consider granting additional benefits to the sector with a higher focus towards newer technologies.
Focus on Indian Intellectual Property Rights (IPRs):<\/strong>With more manufacturing being done in India, incentivizing the development of Indian Intellectual Property Rights (IPRs) in India should now be at the forefront. This will promote more meaningful manufacturing and create a lasting impact on value addition in India. By acting early to embrace the 5G opportunity, India can accelerate the 5G dividend and potentially also become an innovator in 5G applications by generating significant Intellectual Property Rights (IPR).
Increase product base:<\/strong> DoT should continuously monitor the product coverage under the scheme and should periodically review the need for expansion of products under the scheme depending upon technology advancements even for the approved players. This will not
Incremental incentives to high achievers:<\/strong>DoT may consider granting additional benefits to companies that would achieve higher production, promote investment in innovation (including software cost), adopt new technology (5G, O-RAN) or create a component ecosystem in India. The benefit can be granted on similar lines as under a few of the other PLI schemes wherein additional incentives are being provided for achieving incremental targets. This will provide the next level of momentum for manufacturing in this sector and improve the export potential for India
The government is making considerable efforts to make India \u201cAtmanirbhar\u201d on all fronts and there is an equal eye on industry performance. Industry players should also consider developing the overall component ecosystem by bringing their key partners\/suppliers to India. This will not only create synergies but the same may also induce cost efficiencies. Further with a spurt in manufacturing in India, the demand for such components will increase and may also bring an early mover advantage for the suppliers coming to India.
The next move from the government would be critical to see whether industry demands are met to keep the momentum going and achieve the set growth targets.
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印度正在见证国内制造业的巨大增长,为13个朝阳行业引入了生产关联激励(PLI)计划。去年,政府批准了31家公司根据PLI计划提出的提案
电信设备制造业。这些公司承诺在4年内投资334.5亿卢比。该计划自2021年4月1日起生效,旨在使印度成为新的电信设备制造中心,并培育本土公司。根据该计划,在截至2025-26年的5年时间内,对基准年的制成品增量销售提供4%至7%的激励。
激励措施针对广泛的电信和网络设备,包括核心传输设备、4G/5G设备、下一代无线电接入网和无线接入设备、客户端设备、物联网(IoT)、接入设备、交换机和路由器等。
根据交通部报告的临时数据,电信设备制造商已经生产了价值超过900亿卢比的产品,投资近42亿卢比,在该计划实施后创造了4938个就业岗位。迄今为止,生产和投资一直是由能够进行扩张的现有公司推动的。
虽然包括中小微企业在内的一些公司做出了同样的贡献,但这些公司一直在与交通部联系,将计划期限再延长一年。在其他一些PLI计划中,也给予了类似的延期,承认绿地项目涉及一个酝酝期,并且由于对全球供应链的影响,资本货物的采购有延迟。
政府正在研究行业要求延长计划期限,调整现有计划下的一些规则,激励本地设计或在预算平衡的情况下加入新公司。然而,有必要考虑下一套改革,以促进该行业的增长,因为它是印度期待已久的5G数字化转型和推出的支柱。政府可能评估的建议:
- 投资酝酿期的引入使新公司能够建立必要的基础设施,开始生产。其他行业的PLI计划也有类似的规定。这将为绿地和棕地项目提供一个公平的竞争环境
- 电信设备的设计成本很高,在设计的初始阶段需要大量的研发投资。然而,该计划似乎缺少对研发的重视,相反,研发支出被限制在总投资的15%。封顶忽略了该行业的实际支出要求,需要在与行业协商后取消封顶。事实上,可能会考虑如何进一步激励研发人员,并支持准备在未来技术的研发上投入更多资金的参与者
- 该计划下的最高利益上限为申请公司所提供的资本承付限额或最高销售额的20倍,两者以较低者为准。由于技术的不确定性和变化等,可能会有变化,这一障碍可能会抑制公司的扩张
长期考虑
政府已经对电信部门的动态性质和不断发展的技术保持警惕。因此,为了实现净零进口的目标,政府应考虑给予该部门更多的利益,并更加关注新技术。
关注印度的知识产权:随着越来越多的制造业在印度完成,激励印度知识产权(ipr)在印度的发展现在应该放在首位。这将促进更有意义的制造业,并对印度的附加值产生持久的影响。通过及早采取行动抓住5G机遇,印度可以加速5G红利,并有可能通过创造重要的知识产权(IPR)成为5G应用领域的创新者。
增加产品基数:交通部应持续监测该计划下的产品覆盖范围,并应定期审查根据技术进步扩大该计划下产品的需求,即使是对已获批准的参与者也是如此。这不会
对高成就者的增量激励:能源部可以考虑为那些将实现更高产量、促进创新投资(包括软件成本)、采用新技术(5G、O-RAN)或在印度创建组件生态系统的公司提供额外优惠。这种津贴的发放方式与其他一些PLI计划类似,其中为实现增量目标提供了额外奖励。这将为该行业的制造业提供下一个层次的动力,并提高印度的出口潜力
政府正在做出相当大的努力,使印度在各方面都“Atmanirbhar”,并对行业表现给予同等的关注。行业参与者还应考虑将其主要合作伙伴/供应商带到印度,开发整体零部件生态系统。这不仅会产生协同效应,还可能提高成本效率。此外,随着印度制造业的激增,对这类零部件的需求将会增加,也可能为进入印度的供应商带来先发优势。
从政府开始的下一步行动将至关重要,以确定行业需求是否得到满足,以保持势头并实现既定的增长目标。
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Incentives are being provided on a wide range of telecom and networking equipment, including core transmission equipment, 4G\/5G equipment, next-generation radio access network and wireless access equipment, customer premises equipment, internet of things (IoT), access devices, switches, and routers etc.
As per provisional data reported by DoT, Telecom equipment manufacturers have produced products worth more than INR 9,000 crores with an investment of close to 420 crores and generated 4938 jobs post-implementation of the scheme. The production and investment have been so far been driven by existing companies who were able to undertake expansions.
While some of the companies & including MSMEs have contributed to the same, however, these companies have been approaching DoT to extend the scheme period by another year. A similar extension has been given in some of the other PLI schemes recognizing the fact that greenfield projects involve a gestation period and there is a delay in procurement of capital goods due to the impact on the global supply chain.
The government is examining the industry request to extend the scheme period, tweak some of the rules under the existing scheme, incentivise local design or onboard new companies with a balanced budget. However, there is a need to think towards the next set of reforms to boost the growth of the sector as it is the backbone for digital transformation & launch of the much-awaited 5G in India. Suggestions which the government may evaluate:
- Introduction of the gestation period for investment allows new companies to set up the requisite infrastructure for commencing production. Similar provisions are there under the PLI scheme introduced for other sectors as well. This will allow a level playing field for Greenfield and brownfield projects<\/li>
- Telecom equipment has high design costs requiring a majority of investment in R&D in the initial phases of design. However, an emphasis on R&D appears to be missing under the scheme and contrarily the R&D expenditure has been capped at 15% of the total investment. The capping ignores the actual expenditure requirement in the sector and the same needs to be lifted in consultation with the industry. In fact there may be a consideration given to how to further incentivize the R&D and support players ready to invest more in R&D for future technologies<\/li>
- The maximum benefit under the scheme has been capped at the maximum sales turnover which is 20 times of the capital commitment limits or maximum sales turnover provided by the companies under the application, whichever is lower. Due to uncertainties and changes in technology etc, there is likely to be variation and this barrier may disincentivize expansions by the companies<\/li> <\/ul>
Long term considerations
<\/strong>
Government is already vigilant of the dynamic nature of the telecom sector and the evolving technology. Thus, to meet the objective of net-zero imports, the government should consider granting additional benefits to the sector with a higher focus towards newer technologies.
Focus on Indian Intellectual Property Rights (IPRs):<\/strong>With more manufacturing being done in India, incentivizing the development of Indian Intellectual Property Rights (IPRs) in India should now be at the forefront. This will promote more meaningful manufacturing and create a lasting impact on value addition in India. By acting early to embrace the 5G opportunity, India can accelerate the 5G dividend and potentially also become an innovator in 5G applications by generating significant Intellectual Property Rights (IPR).
Increase product base:<\/strong> DoT should continuously monitor the product coverage under the scheme and should periodically review the need for expansion of products under the scheme depending upon technology advancements even for the approved players. This will not
Incremental incentives to high achievers:<\/strong>DoT may consider granting additional benefits to companies that would achieve higher production, promote investment in innovation (including software cost), adopt new technology (5G, O-RAN) or create a component ecosystem in India. The benefit can be granted on similar lines as under a few of the other PLI schemes wherein additional incentives are being provided for achieving incremental targets. This will provide the next level of momentum for manufacturing in this sector and improve the export potential for India
The government is making considerable efforts to make India \u201cAtmanirbhar\u201d on all fronts and there is an equal eye on industry performance. Industry players should also consider developing the overall component ecosystem by bringing their key partners\/suppliers to India. This will not only create synergies but the same may also induce cost efficiencies. Further with a spurt in manufacturing in India, the demand for such components will increase and may also bring an early mover advantage for the suppliers coming to India.
The next move from the government would be critical to see whether industry demands are met to keep the momentum going and achieve the set growth targets.
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