The Government has announced PLI scheme for manufacturing Telecommunication equipment in India. The cabinet approves over Rs 12000 crore PLI scheme for Telecommunication sector. The decision was taken to offset the imports of Telecommunication equipment worth more than Rs 50000 crores and reinforce it with ‘Made in India’ products both for domestic markets and exports. The Government expects that the scheme will lead to Rs 2.4 trillion incremental production of Telecommunication equipment in the country in the next five years and will bring an investment of more than Rs 3000 crore and generate direct and indirect employment. So, another sector that may see a boost.
Overall the Government may incentivize manufacturing in Telecommunication equipment, Electronics, White Goods, Pharma products, even automotive products and textiles. The new addition to the GDP will be substantial over the next few years. Besides we will see growth in the routine sectors already there in the country. So, the broad based picture of the economy looks quite good. The markets will correct, consolidate and then move higher. There is an outside possibility that indices may remain range bound for some time before they move higher. Ideally scrip specific activity could get dominant in the coming days