PLI Scheme for Telecom Products Sees Rs 4,081 Crore Investment and Rs 78,672 Crore in Sales
The production-linked incentive (PLI) scheme for telecom and networking products under India’s ‘Make in India’ initiative has witnessed remarkable growth, with a total investment of Rs 4,081 crore as of January 31, 2025.
New Delhi: The production-linked incentive (PLI) scheme for telecom and networking products under India’s ‘Make in India’ initiative has witnessed remarkable growth, with a total investment of Rs 4,081 crore as of January 31, 2025. The scheme has generated a significant Rs 78,672 crore in sales, including export sales amounting to Rs 14,963 crore.
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The scheme has also contributed to the creation of employment for 26,351 people, according to Dr. Pemmasani Chandra Sekhar, Minister of State for Communications and Rural Development, in a written response to the Rajya Sabha.
PLI Scheme Boosts Domestic Manufacturing in Telecom Sector
The Department of Telecommunications (DoT) introduced the PLI scheme for telecom and networking products on February 24, 2021, with an outlay of Rs 12,195 crore to boost India’s domestic manufacturing capabilities. The scheme aims to promote the manufacturing of telecom products and reduce the dependence on imports, significantly enhancing India’s competitiveness in the global telecom market.
Key Highlights of the PLI Scheme
- Investment and Sales: The PLI scheme has led to an investment of Rs 4,081 crore and sales worth Rs 78,672 crore, including Rs 14,963 crore in export sales.
- Employment Generation: The initiative has generated employment opportunities for 26,351 individuals in the telecom sector.
- Expanded Product List: The PLI scheme now includes 33 telecom and networking products, with the flexibility for companies to add more products based on industry needs. In addition, the scheme offers a 1% incentive for products designed, developed, and manufactured in India.
- Flexibility for Companies: Companies can apply for incentive claims on a quarterly basis, promoting ease of participation.
Transforming India’s Electronics Manufacturing Sector
The PLI scheme is not only benefiting the telecom sector but is also a significant contributor to India’s overall manufacturing growth. As part of the broader PLI program with a Rs 1.97 lakh crore outlay for 14 key sectors, India’s telecom equipment manufacturing has surpassed Rs 50,000 crore in sales under the scheme.
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India’s electronics manufacturing sector has also undergone a remarkable transformation, going from being a net importer to a net exporter of mobile phones. Domestic production of mobile phones has grown substantially, from 5.8 crore units in 2014-15 to 33 crore units in 2023-24. Moreover, India’s mobile phone exports reached 5 crore units, reflecting the success of the PLI scheme in driving manufacturing growth and attracting Foreign Direct Investment (FDI), which has increased by 254% in the sector.
PLI Scheme’s Role in India’s Economic Growth
The PLI scheme has proven to be a game-changer for India’s telecom and electronics manufacturing sectors. By incentivizing domestic production and exports, the scheme is contributing significantly to India’s manufacturing growth, job creation, and economic development. With continued support for innovation and design-led manufacturing, India is poised to become a global leader in the telecom industry.
Key Takeaways:
- Rs 4,081 crore investment under PLI scheme.
- Rs 78,672 crore in total sales, including Rs 14,963 crore from exports.
- Creation of 26,351 jobs in the telecom sector.
- Expansion of product categories and flexible incentive claims for companies.
