Telecom Equipment Manufacturing Sales cross Rs 50,000 cr. under PLI Scheme

In line with the vision of making India self-reliant, the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products and Large-Scale Electronic Manufacturing has resulted in significant increases in production, job creation, economic growth, and exports in the country.

Within three years of its implementation, the Telecom PLI scheme has attracted investments totaling Rs 3,400 crore. Telecom equipment production has surpassed Rs 50,000 crore, with exports reaching around Rs 10,500 crore. This growth has resulted in the creation of over 17,800 direct jobs, along with numerous indirect employment opportunities. These achievements highlight the strong growth and competitive edge of India's telecom manufacturing sector, bolstered by government efforts to boost local production and reduce reliance on imports. The PLI scheme aims to bolster domestic manufacturing capabilities, positioning India as a global center for telecom equipment production. It provides financial incentives to manufacturers based on incremental sales of domestically manufactured products.

The Production Linked Incentive Scheme for Large Scale Electronic Manufacturing of Electronics encompasses the production of mobile phones and their components. This initiative has significantly boosted both the production and export of mobile phones from India. In 2014-15, India was primarily an importer of mobile phones, producing only 5.8 crore units domestically while importing 21 crore units. By 2023-24, domestic production had risen to 33 crore units, with imports reduced to just 0.3 crore units, and nearly 5 crore units exported. The value of mobile phone exports has seen a substantial increase from Rs 1,556 crore in 2014-15 and Rs 1,367 crore in 2017-18 to Rs 1,28,982 crore in 2023-24. Meanwhile, mobile phone imports have decreased from Rs 48,609 crore in 2014-15 to Rs 7,665 crore in 2023-24.

Thanks to initiatives like Make-in-India and the PLI scheme, India's telecom equipment manufacturing sector has experienced significant growth, surpassing Rs 50,000 crore in total sales by PLI beneficiary companies. In FY 2023-24 alone, sales of Telecom & Networking Products by these companies rose by 370% compared to the base year (FY 2019-20). This growth has not only bolstered economic development but also created over 17,800 direct jobs along with numerous indirect employment opportunities across manufacturing and research sectors. By promoting local production, the PLI scheme has notably reduced India's dependence on imported telecom equipment, achieving a 60% import substitution rate and enhancing self-reliance in critical areas like Antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment). This shift has not only strengthened national security but also positioned Indian manufacturers competitively in the global market, offering high-quality products at competitive prices.

Due to initiatives like the PLI Scheme for Telecom and Networking Products, alongside efforts led by the Departments of Telecommunications (DoT) and Electronics & Information Technology (MeitY), India has significantly narrowed the gap between telecom imports and exports. In FY 23-24, the combined export value of telecom equipment and mobiles exceeded Rs 1.49 lakh crore, while imports totaled over Rs 1.53 lakh crore. Over the past five years, the trade deficit in these sectors has shrunk from Rs 68,000 crore to Rs 4,000 crore, marking a substantial reduction. These initiatives have enhanced India's global competitiveness in telecom manufacturing, attracting investments in cutting-edge technologies and core competencies, driving efficiencies, achieving economies of scale, and boosting exports. This transformation has diversified India's export portfolio from traditional commodities to higher value-added products, solidifying its position in the global value chain.