Telecom Equipment Sales Exceed Rs 50,000 Crore Milestone With PLI Scheme

The Production Linked Incentive Scheme for Large Scale Electronic Manufacturing of Electronics considers the production of mobile phones and their components

Because of this PLI scheme, both the production and export of mobile phones from India have significantly increased

Source : Pexels

The Production Linked Incentive (PLI) scheme for telecom equipment manufacturing has achieved a significant milestone, surpassing Rs 50,000 crore in sales, as announced by the centre on Wednesday. According to data shared, the Telecom PLI scheme attracted investments amounting to Rs 3,400 crore within three years. This initiative has led to telecom equipment production exceeding Rs 50,000 crore, alongside exports of Rs 10,500 crore.

According to an official press release from the Ministry of Communications, the scheme has stimulated production, generated employment, spurred economic growth, and boosted exports in the country.

The centre highlighted that the scheme has resulted in the creation of 17,800 direct jobs. “The government's initiatives have successfully promoted local production, reduced import dependency, and enhanced domestic manufacturing capabilities. The PLI scheme aims to enhance domestic manufacturing capabilities and make India a global hub for telecom equipment production. The scheme also offers financial incentives to manufacturers based on their incremental sales from products manufactured in India,” the statement reads.

The Production Linked Incentive Scheme for Large Scale Electronic Manufacturing of Electronics considers the production of mobile phones and their components. Because of this PLI scheme, both the production and export of mobile phones from India have significantly increased. 

In 2014-15, India imported 21 crore units of mobile phones while producing only 5.8 crore units domestically. By 2023-24, India manufactured 33 crore units of mobile phones and imported only 0.3 crore units while also exporting close to 5 crore units. The export value of mobile phones has risen from Rs 1,556 crore in 2014-15 and Rs 1,367 crore in 2017-18 to Rs 1,28,982 crore in 2023-24. Conversely, mobile phone imports have decreased from Rs 48,609 crore in 2014-15 to Rs 7,665 crore in 2023-24.

India has traditionally imported telecom equipment, but initiatives like Make-in-India and the PLI scheme have shifted the balance, resulting in domestic equipment production valued at over Rs 50,000 crore.