(Updates to add Minister’s comment, detail)
By Sankalp Phartiyal
NEW DELHI, February 17 (Reuters) – The Indian Federal Cabinet on Wednesday approved a 121.95 billion rupee ($ 1.68 billion) plan to promote local manufacture and export of telecommunications and networking equipment , said the country’s telecommunications minister.
The program will offer gearmakers annual cash incentives of between 4% and 7% on any increase in sales of locally manufactured equipment over the next five years, from 2019-20 levels.
The plan is part of Prime Minister Narendra Modi’s efforts to make India a hub for electronics production and to create jobs. It also aims to reduce imports, especially from China.
“I appeal to all telecom equipment manufacturers come on, India is waiting for you with this program, we will give you all the help,” Indian Telecommunications Minister Ravi Shankar Prasad said at a conference Press.
Last year India launched a $ 6.65 billion incentive plan to deepen smartphone manufacturing in the country. , Wistron and Pegatron , three of Apple Inc.’s major contract manufacturers plan to invest a total of nearly $ 900 million in India over five years to capitalize on the plan, Reuters previously reported. On Wednesday, Prasad recounted the success of the smartphone system, saying that a major mobile phone maker will assemble $ 40 billion of devices in India over five years and export them to markets including the United States and Europe. .
“This large company has employed 20,000 people so far and will employ 100,000 directly and 300,000 indirectly by next year,” said Prasad, without naming the company.
($ 1 = 72.7800 Indian rupees)