Telecom Equipment Sales Exceed Rs 50,000 Crore Mark Under PLI Scheme

Breach of the Rs 50,000 crore milestone in telecom equipment sales under the Production Linked Incentive (PLI) scheme underscores India's progress in reducing import dependence and bolstering domestic manufacturing. The PLI initiative has attracted Rs 3,400 crore in investments and created over 17,800 direct jobs in three years.

Sales of telecom equipment have exceeded the Rs 50,000 crore milestone under the Production Linked Incentive (PLI) scheme, according to a recent press release by the Ministry of Communication. This accomplishment underscores the effectiveness of government efforts to strengthen domestic manufacturing and curtail import dependence, aligning with Prime Minister Narendra Modi's 'Atmanirbhar Bharat' vision.

Within just three years of the PLI scheme's inception, the telecom sector has attracted Rs 3,400 crore in investments and surpassed Rs 50,000 crore in equipment production. Exports under the scheme have reached around Rs 10,500 crore. This milestone has led to the creation of over 17,800 direct jobs and numerous indirect employment opportunities, showcasing the robust growth and competitiveness of India's telecom manufacturing sector.

Government initiatives to promote local production have played a pivotal role in this success, positioning India as a global hub for telecom equipment production. The Production Linked Incentive Scheme for Large Scale Electronic Manufacturing, which includes the manufacturing of mobile phones and components, has notably boosted both production and export figures.

India has seen significant improvements in mobile phone manufacturing. From producing 5.8 crore mobile phones and importing 21 crore units in 2014-15, the country manufactured 33 crore phones domestically in 2023-24, with just 0.3 crore units imported and nearly 5 crore units exported. The value of mobile phone exports has surged from Rs 1,556 crore in 2014-15 to Rs 1,28,982 crore in 2023-24, reflecting substantial growth and reduced import dependence.

Historically a net importer of telecom gear, India has experienced a transformative shift due to initiatives like Make-in-India and the PLI scheme. The domestic telecom equipment production now exceeds Rs 50,000 crore, marking a 370 per cent increase from FY 2019-20. This growth has generated over 17,800 direct jobs and numerous roles across the manufacturing value chain, fostering economic development.

The PLI scheme has significantly reduced India's reliance on imported telecom equipment by 60 per cent, bolstering national security and self-reliance in critical technologies. Indian manufacturers are now competing globally, particularly in advanced telecom technologies like 5G.

Under the leadership of the Department of Telecommunications (DoT) and Ministry of Electronics and Information Technology (MeitY), the initiatives like the PLI Scheme for Telecom and Networking Products have narrowed the gap between telecom imports and exports. In FY 2023-24, combined exports of telecom equipment and mobiles reached over Rs 1.49 lakh crore, just shy of the Rs 1.53 lakh crore import value, highlighting India's growing export capabilities.

Communications and Electronics Minister Ashwini Vaishnaw remarked on X, formerly known as Twitter, about the remarkable progress in mobile phone, electronics, and telecom product manufacturing under the PLI scheme. He highlighted the increase from 5.8 crore to 33 crore mobile phones produced domestically and the significant export achievements.

Over the past five years, the trade deficit in telecom products has decreased from Rs 68,000 crore to Rs 4,000 crore, demonstrating the PLI schemes' success in enhancing India's global competitiveness and attracting investments in new technologies.

(With inputs from agencies.)