The Production Linked Incentive (PLI) Scheme for Telecom and Networking Products, as well as for Large Scale Electronic Manufacturing of Electronics, has notably boosted production, job creation, economic growth, and exports in India. Over three years, the Telecom PLI scheme has attracted Rs 3,400 crore in investments, resulted in telecom equipment production exceeding Rs 50,000 crore, and generated exports worth approximately Rs 10,500 crore, creating over 17,800 direct jobs. This achievement highlights the substantial growth and competitiveness of India’s telecom manufacturing sector, spurred by government initiatives aimed at promoting local production and reducing import dependence.
The PLI scheme’s objective is to enhance domestic manufacturing capabilities and position India as a global hub for telecom equipment production. It offers financial incentives to manufacturers based on their incremental sales from products made in India. The Production Linked Incentive Scheme for Large Scale Electronic Manufacturing of Electronics focuses on producing mobile phones and their components. As a result, India’s mobile phone production and exports have seen a remarkable increase. From being a significant importer of mobile phones in 2014-15, when only 5.8 crore units were produced domestically while 21 crore units were imported, India produced 33 crore units in 2023-24, imported just 0.3 crore units, and exported nearly 5 crore units. The export value of mobile phones rose from Rs 1,556 crore in 2014-15 to Rs 1,28,982 crore in 2023-24, while imports dropped from Rs 48,609 crore in 2014-15 to just Rs 7,665 crore in 2023-24.
By promoting local production, the PLI scheme has significantly reduced India’s dependence on imported telecom equipment, achieving an import substitution rate of 60 percent, and making India nearly self-reliant in antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment). Telecom equipment includes complex items like radios, routers, and network equipment.
Due to the PLI Scheme for Telecom and Networking Products and other related initiatives by DoT & MeitY, the trade gap between telecom imports and exports has significantly narrowed, with the total export value of goods (including telecom equipment and mobiles) exceeding Rs 1.49 lakh crore compared to imports of over Rs 1.53 lakh crore in FY 2023-24.
Over the past five years, the trade deficit in telecom (including both equipment and mobiles) has decreased from Rs 68,000 crore to Rs 4,000 crore. The PLI Schemes have made Indian manufacturers globally competitive, attracted investment in core competencies and advanced technologies, improved efficiencies, created economies of scale, enhanced exports, and integrated India into the global value chain. They have transformed India’s export basket from traditional commodities to high value-added products.
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