Telecom is the biggest contributor to FDI

In another move to bump up PM Narendra Modi’s ‘Make in India’ and ‘Digital India’ program, government has now approved 21 electronic clusters. Telecom Minister Ravi Shankar Prasad pronounced the pact while speaking at the occasion of NASSCOM and IESA alliance for government’s Make in India and Digital India plans.

"We have given in-principle approval to 21 electronic clusters and electronic manufacturing is priority area for us," said Ravi Shankar Prasad.
The report published in business daily Economic Times said the alliance is aiming for IT and electronic system design and manufacturing (ESDM) to contribute 25% to the country's GDP in another ten years.

Telecom Minister Ravi Shankar Prasad informed that the ministry had already approved proposals worth Rs 9,000 crore among the applications worth 65,000 crore it has received so far. All the applications approved by the ministry have been accepted under the modified special incentive package scheme or MSIPS program, which aims to promote large-scale manufacturing in electronic system design and manufacturing.

Under the MSIPS program, a subsidy of 20% in capital expenditure is given to companies for investment in SEZs and 25% in non-SEZs. As per the reports, telecom sector, in the past few years has emerged as one of the biggest contributor in FDI.

Prasad also said, ‘Manufacturing is crucial as it drives economic growth and revenue for the country. India's mobile penetration is expected to cross the one billion mark, but it is unfortunate that the country depends largely on imported devices.’