Samsung has conveyed to the Department of Telecommunications (DoT) its intention to apply for the next edition of the production-linked incentive (PLI) 2.0 scheme for network equipment to locally manufacture 4G and 5G gear.
The Korean telecom equipment manufacturer is reportedly in talks with Reliance Jio, its existing client for 4G products, and a new client for 5G products, Bharti Airtel, according to The Economic Times.
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Samsung had been working with Jio in its 4G expansion and but it did not want to come to India and invest a huge amount just for one client. The telecom equipment maker has been importing products duty-free through the free trade agreement (FTA) route from South Korea and Vietnam.
However, with Bharti Airtel possibly becoming another client, Samsung may be looking to manufacture 4G and 5G equipment within India and benefit from the PLI scheme to also export products from India globally.
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Reliance Jio is currently running trials of its own 5G network, and it might tie up with Samsung for supplying 5G gear too. On the other hand, Bharti Airtel has been looking to diversify its vendor base beyond Nokia and Ericsson. Samsung can benefit greatly from the deals and the PLI scheme 2.0 while India will see more employment opportunities and a boost in its economy.
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(Edited by : Shoma Bhattacharjee)