TRAI Proposed Concurrent PLI Scheme to Boost Innovation and Promote Resident IPRs

The Telecom Regulatory Authority of India (TRAI) has proposed the implementation of a "concurrent Production Linked Incentive (PLI) scheme" aimed at encouraging manufacturing activities related to components and sub-assemblies in collaboration with industry players. This scheme is part of a broader set of recommendations from TRAI to promote the manufacturing of networking and telecom equipment in India. These recommendations include tax benefits, the establishment of a dedicated master fund, and other incentives to stimulate domestic production in the telecom sector. The goal is to strengthen the telecom manufacturing ecosystem in India and reduce reliance on imports.

As part of the efforts to boost innovation and promote resident Intellectual Property Rights (IPRs), TRAI has suggested the implementation of lower corporate income tax rates. Enterprises that are consistently involved in R&D-driven manufacturing and generate at least half of their turnover from owned IPRs would be eligible for these reduced tax rates. This proposal aims to incentivize companies to focus on innovation and increase their ownership of intellectual property, potentially driving economic growth and competitiveness.