The Ministry of Communications has reported that the Production-Linked Incentive (PLI) scheme for the telecom sector has generated significant economic growth and employment opportunities. Within three years, the scheme has facilitated telecom equipment sales exceeding Rs 50,000 crore and created over 17,800 direct jobs, along with numerous indirect jobs.
The telecom PLI scheme has attracted an investment of Rs 3,400 crore, propelling telecom equipment production past the Rs 50,000 crore mark, with exports totaling approximately Rs 10,500 crore. The Ministry highlighted that telecom and networking product sales by PLI beneficiary companies in FY 2023-24 surged by 370% compared to the base year of FY 2019-20.
The PLI scheme has significantly reduced India’s reliance on imported telecom equipment, achieving 60% import substitution. The country has nearly become self-reliant in producing antennae, gigabit passive optical network (GPON), and consumer premises equipment (CPE).
The government permits companies to avail benefits for producing 5G equipment. Currently, 5G telecom equipment manufactured in India is being exported to North America and Europe. The initiative has not only contributed to economic growth but also created substantial employment opportunities across the value chain, from manufacturing to research and development.
The PLI scheme for Large Scale Electronic Manufacturing of Electronics has also significantly boosted mobile phone production and exports from India. In 2014-15, India produced only 5.8 crore units while importing 21 crore units. By 2023-24, the country produced 33 crore units, imported only 0.3 crore units, and exported close to 5 crore units.
The value of mobile phone exports has risen dramatically from Rs 1,556 crore in 2014-15 to Rs 1,28,982 crore in 2023-24. Meanwhile, mobile phone imports have dropped from Rs 48,609 crore in 2014-15 to just Rs 7,665 crore in 2023-24.
As a result of the PLI schemes for Telecom and Networking Products and other related initiatives by the Department of Telecommunications (DoT) and the Ministry of Electronics and IT (MeitY), the gap between telecom imports and exports has narrowed significantly. In FY 23-24, the total value of telecom equipment and mobile phone exports was over Rs 1.49 lakh crore, compared to imports of over Rs 1.53 lakh crore.
Over the past five years, the trade deficit in telecom (both telecom equipment and mobiles) has reduced from Rs 68,000 crore to Rs 4,000 crore. These PLI schemes are making Indian manufacturers increasingly competitive on the global stage.
