Fintech major Paytm is urging the Indian government to extend Production-Linked Incentive (PLI) support to payment devices, a move the company believes will accelerate domestic manufacturing and reduce dependence on imports.
During the launch of Paytm’s new 4G-enabled Pocket Soundbox and Music Soundbox, Founder & CEO Vijay Shekhar Sharma highlighted a key challenge:
India-made soundboxes currently face higher taxes than imported ones.
Sharma noted that while Paytm has already begun local production and indigenisation of its payment devices, the current tax structure puts domestic manufacturers at a disadvantage. Imported soundboxes attract zero duty, while locally manufactured products are required to pay taxes.
“Paytm soundboxes are completely made in India. But when devices come from overseas, there’s no duty — and we are required to pay duties. My request to the government is to declare PLI on payment equipment,” Sharma said.He urged the government to classify payment equipment under the PLI scheme, which would provide financial incentives to Indian manufacturers and strengthen the country’s hardware ecosystem.
The move aligns with Paytm’s broader push toward domestic hardware production, which Sharma believes is essential for job creation and for transitioning India from a service-led to a manufacturing-led economy.
The newly launched devices —
1. Paytm Pocket Soundbox: a debit-card sized portable payment alert device for merchants on the move
2. Paytm Music Soundbox: a smart soundbox that plays music while also giving payment alerts
— mark the company’s next step in deepening India’s digital payments ecosystem through locally produced innovation.
If included in the PLI scheme, payment devices could benefit from subsidies, reduced cost of production, and a more competitive landscape for Indian manufacturers compared to overseas suppliers.
