Telecom Equipment Sales Cross INR 50K Cr, Over 17K Jobs Created Within Three Years Of PLI Roll Out

By Inc42 Media

SUMMARY

As per the Ministry of Communications, the scheme has attracted an investment of INR 3,400 Cr

This initiative has created more than 17,800 direct jobs and many more indirect jobs

The PLI scheme aims to boost domestic manufacturing capabilities and establish India as a global hub for telecom equipment production

The sales of telecom equipment by production linked incentive (PLI) scheme beneficiaries have crossed INR 50,000 Cr and created more than 17,800 direct jobs and many more indirect jobs, the Ministry of Communications said.

Within three years, the telecom PLI scheme attracted investments of INR 3,400 Cr, with telecom equipment production exceeding INR 50,000 Cr and exports totalling INR 10,500 Cr, as per the ministry’s statement.

It further added that this new milestone underscores the growth and competitiveness of India’s telecom manufacturing industry, driven by government initiatives to promote local production and reduce import dependency.

The PLI scheme aims to boost domestic manufacturing capabilities and establish India as a global hub for telecom equipment production. It provides financial incentives to manufacturers based on their incremental sales of products made in India.

The scheme was launched in April 2020 for the large scale electronics manufacturing sector and was subsequently expanded to include 10 other sectors by the end of 2020. The scheme for large scale electronics manufacturing covers the manufacture of mobile phones and its components. This initiative aligns with India’s Atmanirbhar Bharat campaign, aiming to boost self-reliance and promote domestic manufacturing. 

The ministry claims that as a result of the PLI scheme, both the production and export of mobile phones from India have increased significantly. In 2014-15, India was a large importer of mobile phones, producing only 5.8 Cr units while importing 21 Cr units. However, in 2023-24, the country produced 33 Cr units, imported just 0.3 Cr units and exported nearly 5 Cr units. 

The value of mobile phone exports rose from INR 1,556 Cr in 2014-15 and INR 1,367 Cr in 2017-18 to INR 1,28,982 Cr in 2023-24. Meanwhile, the import value of mobile phones decreased from INR 48,609 Cr in 2014-15 to INR 7,665 Cr in 2023-24, it said.

The ministry further highlighted that sales of telecom and networking products by PLI beneficiary companies in FY 2023-24 increased by 370% compared to the base year (FY 2019-20).

Source: Inc42 Media