One97 Communications, Paytm’s parent company, wants the government to increase the ambit of the production-linked incentive (PLI) scheme to include payment segment devices, a top company official said on Monday.
According to a PTI report, the official stated that the move, if implemented, will help boost local production. Paytm founder and CEO Vijay Shekhar Sharma further added that local production attracts more taxes as compared to imports.
Sharma stated that their firm has initiated local manufacturing of soundbox devices in the country. He said, “India is a services-dominated country and there is a need to go towards manufacturing for job creation. Making software in India and importing devices from China to operate -- it is depriving the country of full advantage of the technology,” as per the report.
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He emphasised the importance of promoting production at the local level through such incentive schemes. Commenting on the pressures faced in local production, Sharma added, “Paytm soundboxes are completely made in India. We have done indigenisation of soundboxes. As we all know, we are under pressure from one new thing. When soundboxes come from overseas, duty is not levied on them but we are required to pay duties. My request to the government is to declare PLI on payment equipment.”
The company also announced the launch of two new models of payment soundboxes, namely Paytm Pocket Soundbox and Paytm Music Soundbox for merchants. While the current soundboxes are used by the merchants to get audio alerts about any new payments, the new soundboxes will allow the merchants to use the device for listening music by connecting it to their phones.
As of June, 2023, the company has more than 79 lakh merchants attached to it for its payment devices like soundboxes and card machines. The company aims to install 4-5 crore soundboxes within the next five years in the country, the report added.