Production-Linked Incentive (PLI) scheme for telecom and networking products has garnered significant success, achieving Rs 3,998 crore in actual investments, according to a report presented in Parliament. This figure is close to scheme’s target of Rs 4,014 crore. Dr. Chandra Sekhar Pemmasani, Minister of State for Communications and Rural Development, informed Lok Sabha that as of October 31, 42 beneficiaries had been approved under scheme. initiative, launched in 2021, aims to enhance domestic manufacturing capabilities, reduce import dependency, and boost India’s position in global telecom market.
Major Details
| Key Aspect | Details |
| Scheme Name | Production-Linked Incentive (PLI) Scheme for Telecom Products |
| Launch Year | 2021 |
| Investments Achieved | Rs 3,998 crore |
| Investment Target | Rs 4,014 crore |
| Beneficiaries Approved | 42 as of October 31 |
| Exports | Rs 12,384 crore by September 30 |
| Total Sales | Rs 65,320 crore achieved by applicants |
| Financial Outlay | Rs 12,195 crore |
| Incentive Range | 4% to 7%, with additional 1% for India-designed products |
| Products Covered | 33 telecom and networking products |
PLI Scheme Objectives
PLI scheme for telecom and networking products was introduced by Department of Telecommunications (DoT) to promote local manufacturing of high-quality telecom equipment. key goals include:
- Reducing Import Dependency: Encouraging domestic production to minimize reliance on foreign-made telecom products.
- Boosting Export Capabilities: Enabling Indian manufacturers to compete globally by producing quality telecom equipment at competitive prices.
- Enhancing Local Innovation: Providing additional incentives for products designed, developed, and manufactured in India.
Progress Under Scheme
As of October 31, 2024, scheme has seen significant achievements:
- Investments and Approvals: Rs 3,998 crore in investments have been confirmed, with 42 companies approved as beneficiaries.
- Exports and Sales: Export value under scheme reached Rs 12,384 crore by September 30, while applicant companies achieved total sales worth Rs 65,320 crore.
- Focus on Innovation: Amendments to scheme introduced an additional 1% incentive for products entirely designed and developed in India.
Products and Incentives
PLI scheme covers 33 telecom and networking products, including:
- Core transmission equipment
- 4G/5G next-generation radio access networks
- Wireless equipment
- Optical fiber cable and optical transport equipment
Incentives are offered in range of 4% to 7%, with an additional 1% incentive for products designed and manufactured in India. Micro, Small, and Medium Enterprises (MSMEs) benefit from enhanced incentives to encourage their participation.
Global Competitiveness and Export Growth
One of major achievements of PLI scheme has been its contribution to positioning Indian manufacturers as competitive players in global telecom market. By providing financial incentives and promoting local innovation, scheme has led to a significant increase in exports and reduced reliance on imported equipment. Indian companies are now better equipped to produce telecom products that meet global standards at competitive prices.
Impact on MSMEs
scheme’s focus on MSMEs has been instrumental in diversifying telecom manufacturing ecosystem. By offering higher incentives to smaller enterprises, government has encouraged broader participation, ensuring that smaller manufacturers can compete alongside established players.
Challenges and Opportunities
While PLI scheme has made notable progress, certain challenges remain. These include:
- Technological Upgrades: Indian manufacturers need to adopt cutting-edge technologies to remain competitive.
- Global Supply Chain Disruptions: External factors such as geopolitical tensions and supply chain issues could impact growth.
- Skilled Workforce: Ensuring a skilled workforce to meet demands of advanced telecom manufacturing.
However, opportunities outweigh these challenges. With government support, increased investment, and a growing focus on self-reliance, India is poised to become a global hub for telecom manufacturing.
Conclusion
PLI scheme for telecom and networking products is a cornerstone of India’s strategy to strengthen its manufacturing sector and reduce import dependency. With Rs 3,998 crore in investments, Rs 12,384 crore in exports, and robust participation from industry players, scheme is on track to achieve its goals. By fostering innovation, providing targeted incentives, and encouraging MSME participation, PLI scheme continues to drive growth of India’s telecom industry, ensuring its competitiveness on global stage.
Disclaimer
information presented in this article is based on official reports and statements as of December 2024. Details are subject to change as new updates emerge. Readers are encouraged to follow official announcements for most accurate and up-to-date information. This content does not represent views or endorsements of any individual or organization.
