NEW DELHI: Telecom equipment manufacturing sales have surpassed Rs 50,000 crore within three years of the launch of the Production Linked Incentive (PLI) Scheme for telecom in the country.
According to the Department of Telecommunications (DoT), the scheme has attracted investments totalling Rs 3,400 crore and resulted in the export of equipment worth Rs 10,500 crore. Furthermore, the PLI scheme has generated more than 17,800 direct jobs and numerous indirect jobs."
“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. 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,” said DoT in a press note.
The government launched the PLI scheme to enhance domestic manufacturing capabilities and make India a global hub for telecom equipment production. The scheme offers financial incentives to manufacturers based on their incremental sales from products manufactured in India.
The government highlighted that sales of telecom and networking products by PLI beneficiary companies in FY 2023-24 have increased by 370% compared to the base year (FY 2019-20).
Moreover, by encouraging local production, the PLI scheme has significantly reduced the country’s reliance on imported telecom equipment, resulting in import substitution of 60%. India has become almost self-reliant in antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment).
The government also mentioned that due to the PLI scheme, both the production and export of mobile phones from India have seen substantial growth. According to government data, in 2014-15, India produced only 5.8 crore units of mobile phones while importing 21 crore units. By 2023-24, India produced 33 crore units and imported just 0.3 crore units, with nearly 5 crore units exported.
The value of mobile phone exports increased 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. Conversely, mobile phone imports valued at Rs 48,609 crore in 2014-15 dropped to Rs 7,665 crore in 2023-24.
As a result of the PLI Scheme for Telecom and Networking Products and other related initiatives by both the DoT and MeitY (Ministry of Electronics and Information Technology), the gap between telecom imports and exports has reduced significantly, with the total value of goods (both telecom equipment and mobiles combined) exported reaching over Rs 1.49 lakh crore compared to imports of over Rs 1.53 lakh crore in FY 2023-24.
“In fact, over the last five years, the trade deficit in telecom (both telecom equipment and mobiles combined) has reduced from Rs 68,000 crore to Rs 4,000 crore. Both PLI Schemes have started to make Indian manufacturers globally competitive, attract investment in core competencies and cutting-edge technologies, ensure efficiencies, create economies of scale, enhance exports, and integrate India into the global value chain,” stated the DoT in a press release.