India’s ‘Make in India’ initiative has received a significant boost through the Production-Linked Incentive (PLI) scheme for telecom and networking products. As of January 31, 2025, this scheme has attracted an impressive investment of Rs 4,081 crore, leading to total sales of Rs 78,672 crore. Among these, export sales have contributed Rs 14,963 crore. This scheme has also created jobs for 26,351 people, according to Dr. Pemmasani Chandra Sekhar, the Minister of State for Communications and Rural Development, in a written statement to the Rajya Sabha.
What is the PLI Scheme for Telecom and Networking Products?
The Department of Telecommunications (DoT) introduced the PLI scheme on February 24, 2021, with a goal to encourage domestic manufacturing of telecom and networking products in India. The scheme has an allocation of Rs 12,195 crore.
To further boost manufacturing, the scheme was amended to include an additional 1% incentive for products that are designed, developed, and manufactured within India. This move is aimed at promoting “design-led manufacturing,” which encourages companies to innovate and develop products domestically. Additionally, 11 new products were added to the approved list based on industry demand.
Key Features of the PLI Scheme
- Flexible Incentive Application: Companies are allowed to apply for incentives quarterly, making it easier to manage cash flows and benefits.
- Addition of Products: Companies can add one or more products from the approved list at any time during the scheme’s tenure, allowing them to adapt quickly to market needs.
- Approved Product List: The PLI scheme covers 33 telecom and networking products, all eligible for incentive claims.
The Bigger Picture: Manufacturing Growth in India
The PLI scheme is a part of a larger government effort to enhance India’s manufacturing sector. It is part of a broader initiative with a total outlay of Rs 1.97 lakh crore, aimed at stimulating growth in 14 key sectors. Notably, telecom equipment manufacturing has crossed the Rs 50,000 crore mark in sales under the PLI scheme.
How the PLI Scheme is Transforming India’s Electronics Sector
India’s electronics manufacturing has flourished under the PLI scheme. What was once a country heavily reliant on imports has now become a significant exporter of mobile phones. In fact, domestic mobile phone production has surged from 5.8 crore units in 2014-15 to a massive 33 crore units in 2023-24. Meanwhile, imports of mobile phones have dropped significantly, and exports have reached 5 crore units. Furthermore, Foreign Direct Investment (FDI) has risen by a remarkable 254%, highlighting the role of the PLI scheme in boosting both manufacturing and investment.
Conclusion
The PLI scheme for telecom and networking products is a key part of India’s strategy to enhance domestic manufacturing, create jobs, and increase exports. By offering flexible incentives and fostering innovation, it has not only helped the telecom sector grow but also contributed to the overall success of India’s electronics manufacturing. The scheme plays a crucial role in making India a more self-reliant and competitive player in the global market.
