PLI scheme for telecom products sees Rs 4,081 cr investment, sales worth Rs 78,672 cr

The Department of Telecommunications (DoT) notified the PLI scheme on February 24, 2021 to boost domestic manufacturing of telecom and networking products in India with an outlay of Rs 12,195 crore.

New Delhi: In a boost for the “Make in India” initiative, the production-linked incentive (PLI) scheme for telecom and networking products has seen an investment of Rs 4,081 crore (as on January 31), generating total sales of Rs 78,672 crore.

It includes export sales worth Rs 14,963 core. Additionally, it has generated employment for 26,351 people, said Dr Pemmasani Chandra Sekhar, Minister of State for Communications And Rural Development, in a written reply in the Rajya Sabha.

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The Department of Telecommunications (DoT) notified the PLI scheme on February 24, 2021 to boost domestic manufacturing of telecom and networking products in India with an outlay of Rs 12,195 crore.

The scheme guidelines were amended to introduce an additional 1 per cent incentive for products designed, developed, and manufactured in India to promote design-led manufacturing and an inclusion of 11 additional products in the approved list based on industry requirements.

It also offered flexibility for companies to add one or more products from the approved list at any time during the scheme tenure and an option for companies to apply for incentive claims on a quarterly basis.

The PLI scheme covers 33 telecom and networking products, against which companies can claim incentives. The PLI schemes (Rs 1.97 lakh crore outlay) for 14 key sectors are driving manufacturing growth, as telecom equipment manufacturing surpassed Rs 50,000 crore in sales under the PLI scheme, according to latest government data.

India’s electronics manufacturing sector has flourished under the PLI scheme, transforming from a net importer to a net exporter of mobile phones.

Domestic production grew from 5.8 crore units in 2014-15 to 33 crore units in 2023-24, with imports dropping significantly. Exports reached 5 crore units, and Foreign Direct Investment increased by 254 per cent, highlighting the scheme’s role in boosting manufacturing and investment.