As per industry sources, Nokia is exploring opportunities to manufacture more products in India in a cost-competitive manner to serve the local as well as global market. The company is on track to fulfill its investment and production commitments under the production linked incentive (PLI) scheme.
The company believes the PLI scheme to be encouraging initiative by the government of India in line with country’s vision to be a global manufacturing hub and become self-reliant. Earlier, in December 2020, Nokia had started the production of Nokia AirScale massive-MIMO (ma-MIMO) solution at its Chennai facility.
Meanwhile, a total of 31 companies, including Nokia, intends to invest Rs 33.45 billion over the next four and-a-half years. The companies selected for the PLI scheme include Nokia India, HFCL, Dixon Technologies, Flextronics, Foxconn, Coral Telecom, VVDN Technologies, Tejas Networks, Akashastha Technologies and GS India.
The Department of Telecommunications (DoT) had previously, in February 2021, notified the PLI scheme for telecom and networking products with a financial outlay of Rs 121.95 billion over the five years. The scheme offers incentives in the range between 4 per cent and 7 per cent for different categories and tenures. Besides, for micro, small and medium enterprises (MSMEs), a 1 per cent higher incentive is proposed in year one, year two and year three.