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Telecom equipment manufacturing sales cross Rs 50,000 cr mark under PLI scheme

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New Delhi: The Production Linked Incentive (PLI) scheme has pushed Telecom and Network production to exceed Rs 50,000 crore mark and generating thousands of job both direct and indirect, says Government.

Within three years of the Telecom PLI scheme, the scheme has attracted an investment of Rs 3,400 crore, the telecom equipment production has exceeded the milestone of Rs 50,000 crore with exports totaling approximately Rs 10,500 crore, creating more than 17,800 direct jobs and many more indirect jobs, Ministry of Communication said in an official statement.

This milestone underscores the robust growth and competitiveness of India’s telecom manufacturing industry, driven by government initiatives to promote local production and reduce import dependency.

The PLI scheme aims to enhance domestic manufacturing capabilities and make India a global hub for telecom equipment production. The scheme also offers financial incentives to manufacturers based on their incremental sales from products manufactured in India.

The PLI Scheme for Large Scale Electronic Manufacturing of Electronics covers the manufacture of mobile phones and its components. As a result of this PLI scheme, both the production and export of mobile phones from India has picked up greatly.

India from being a large importer of mobile phones in 2014-15, when only 5.8 crore units were produced in the country, while 21 crore units were imported, in 2023-24, 33 crore units were produced in India and only 0.3 crore units were imported and close to 5 crore units were exported, the Ministry said.

The value of exports of mobile phones has gone up from Rs 1,556 crore in 2014-15 and just Rs 1,367 crore in 2017-18, to Rs 1,28,982 crore in 2023-24. Import of mobile phones was valued a Rs 48,609 crore in 2014-15 and has dropped to just Rs 7,665 crore in 2023-24.

India has been importing telecom gear for many years, but the balance has changed due to the Make-in-India and PLI scheme, leading to the production of equipment valued at over Rs 50,000 crore in the country, the statement said.

Indian manufacturers are increasingly competing on a global scale, offering high-quality products at competitive prices.

Telecom equipment includes intricate items like radios, routers, and network equipment, among others. Furthermore, companies are permitted by the government to avail benefits for producing 5G equipments. 5G Telecom equipment manufactured in India is currently being exported to North America and Europe.

As a result of the PLI Scheme for Telecom and Networking Products and other related initiatives run by both DoT and MeitY, the gap between telecom imports and exports has reduced significantly with the total value of goods (both telecom equipment and mobiles put together) exported is over Rs 1.49 lakh crore as against imports of over Rs 1.53 lakh crore in FY 23-24.

In fact, over the last five years, the trade deficit in telecom (both telecom equipment and mobiles put together) has reduced from Rs 68,000 crore to Rs 4,000 crore and both the PLI Schemes have started to make Indian manufacturers globally competitive, attract investment in the areas of core competency and cutting-edge technology; ensure efficiencies; create economies of scale; enhance exports and make India an integral part of the global value chain. It has transformed India’s exports basket from traditional commodities to high value-added products.

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