Transforming telecom manufacturing: PLI scheme hits Rs 50,000 crore sales milestone

Transforming telecom manufacturing: PLI scheme hits Rs 50,000 crore sales milestone

Mumbai  : The Production Linked Incentive (PLI) scheme has propelled the country’s telecom equipment manufacturing sales past Rs 50,000 crore. This achievement underscores the transformative impact of government initiatives aimed at boosting local production and reducing import dependency. The PLI scheme, launched to bolster domestic manufacturing capabilities, has not only met but exceeded expectations by attracting investments worth Rs 3,400 crore within just three years.

Impact of PLI Scheme on Economic Growth

Aligned with Prime Minister Shri Narendra Modi’s vision of self-reliant India (‘Atmanirbhar Bharat’), the PLI scheme has spurred exponential growth across various metrics. Telecom equipment production has surged, complemented by a remarkable increase in exports totaling approximately Rs 10,500 crore. This growth trajectory has been instrumental in creating over 17,800 direct jobs, with a ripple effect on additional indirect employment opportunities.

Sector-Specific Growth Highlights

Telecom and Networking Products: A Testament to Growth

Beneficiary companies under the PLI scheme have witnessed a staggering 370% increase in sales of Telecom & Networking Products in FY 2023-24 compared to the base year of FY 2019-20. This exponential growth not only showcases the sector’s resilience but also its capability to meet burgeoning domestic and global demands.

Mobile Phones and Components: From Importer to Exporter

India’s journey from a net importer to a significant exporter of mobile phones is a testament to the efficacy of the PLI scheme. The scheme has catalyzed production, with 33 crore units manufactured domestically in 2023-24, while imports dwindled to a mere 0.3 crore units. This shift has not only bolstered economic indicators but also strengthened India’s position as a formidable player in the global mobile phone market.

Strategic Benefits of the PLI Scheme

Reduced Import Dependency and Enhanced Security

By promoting local production, the PLI scheme has achieved a remarkable 60% reduction in import dependency for telecom equipment. Critical components like Antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment) are now predominantly manufactured within India, thereby enhancing national security and resilience.

Global Competitiveness and Export Surge

Indian manufacturers, buoyed by government support and incentives, are now competing effectively on a global scale. The export of telecom equipment, including sophisticated items like 5G equipment, to North America and Europe underscores India’s ascent as a preferred supplier of high-quality, competitively priced products in the international market.

Strategic Initiatives Driving Success

Government Support and Industry Collaboration

The success of the PLI scheme can be attributed to robust government policies and proactive measures by the Department of Telecommunications (DoT) and Ministry of Electronics and Information Technology (MeitY). These initiatives have not only narrowed the trade deficit in telecom but also positioned India as a vital link in the global supply chain for telecom and electronic goods.

Technological Advancements and Future Prospects

Looking ahead, the focus remains on fostering innovation and technological advancements within the telecom manufacturing sector. Initiatives aimed at harnessing cutting-edge technologies and promoting R&D investments will further consolidate India’s leadership in telecom equipment manufacturing.


In conclusion, the PLI scheme for Telecom and Networking Products has heralded a new era of growth and self-sufficiency in India’s telecom sector. By surpassing the Rs 50,000 crore sales milestone and significantly reducing import dependency, the scheme has not only bolstered economic indicators but also reinforced India’s stature as a global manufacturing hub. With continued government support and industry collaboration, India is poised to achieve even greater milestones in the telecom manufacturing landscape, paving the way for a resilient and self-reliant future.


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