PLI Scheme: The Production Linked Incentive (PLI) Scheme for Telecom Products is making waves in India’s manufacturing landscape. Designed to encourage domestic production of telecom and networking equipment, this scheme has seen remarkable success in just a few years. As of January 31, 2025, the scheme has drawn in investments worth ₹4,081 crore, generated sales of ₹78,672 crore, and created employment for over 26,351 people. These numbers are not just impressive; they reflect India’s growing self-reliance in the telecom sector.
PLI Scheme
| Feature | Details |
|---|---|
| Scheme Name | Production Linked Incentive (PLI) Scheme for Telecom & Networking Products |
| Launch Date | February 24, 2021 |
| Total Outlay | ₹12,195 crore |
| Total Investment (as of Jan 2025) | ₹4,081 crore |
| Total Sales Generated | ₹78,672 crore |
| Exports Achieved | ₹14,963 crore |
| Employment Created | 26,351 jobs |
| Number of Products Covered | 33 telecom & networking products (+11 added products) |
| Incentive for Design-Led Manufacturing | Additional 1% |
| Official Website | Department of Telecommunications (DoT) PLI Info |
The PLI Scheme for Telecom Products is a game-changer in India’s quest for self-reliance and global competitiveness. With ₹4,081 crore in investments, ₹78,672 crore in sales, and over 26,000 jobs created, the scheme is reshaping India’s telecom landscape. Its focus on design-led manufacturing ensures not just assembly but genuine innovation. As the scheme continues to evolve, it promises to place India firmly on the map as a telecom manufacturing powerhouse.
Understanding the PLI Scheme for Telecom Products
What is the PLI Scheme?
In simple terms, the PLI scheme rewards companies that manufacture telecom and networking products in India. The more products they make and sell, the more financial incentives they receive from the government. This not only boosts domestic production but also reduces reliance on imported goods.
Launched in 2021, the scheme initially focused on 33 telecom and networking products such as routers, switches, and wireless equipment. Over time, 11 more products were added based on industry feedback, ensuring the scheme remains relevant and competitive.
Why is the PLI Scheme Important?
Before the PLI scheme, much of India’s telecom equipment was imported. This made the sector vulnerable to global supply chain disruptions and increased costs. By encouraging local manufacturing, the scheme aims to:
- Strengthen India’s Atmanirbhar Bharat (self-reliant India) vision.
- Boost exports of telecom products.
- Generate employment opportunities.
- Foster innovation and design-led manufacturing.
Major Achievements of the Scheme
1. ₹4,081 Crore Investment Attracted
Domestic and international companies have invested over ₹4,000 crore under this scheme. These investments have fueled the development of state-of-the-art manufacturing facilities across the country.
2. ₹78,672 Crore in Sales Generated
The total sales, including ₹14,963 crore in exports, reflect how Indian manufacturers are not only meeting domestic demands but also competing in global markets.
3. Employment Generation
More than 26,351 new jobs have been created, providing livelihoods and skill development opportunities across India.
4. Design-Led Manufacturing Incentive
To encourage home-grown innovation, the government offers an extra 1% incentive for products that are designed, developed, and manufactured within India. This step is crucial to move beyond just assembly and foster real innovation.
PLI Scheme: How Does the PLI Scheme Work?
Step-by-Step Breakdown:
Step 1: Company Eligibility & Registration
- Companies must meet investment and turnover criteria set by the government.
- Eligible entities register under the scheme through the Department of Telecommunications (DoT).
Step 2: Production & Sales Targets
- Companies commit to specific production and sales targets.
- They also agree to use a certain percentage of domestic value addition (DVA) in their manufacturing.
Step 3: Incentive Claiming
- Upon achieving targets, companies submit documentation proving their production and sales figures.
- The government disburses incentives based on the performance.
Step 4: Monitoring & Compliance
- Regular audits and checks ensure companies comply with scheme guidelines.
Impact on the Indian Telecom Sector
The PLI scheme has transformed the telecom sector in multiple ways:
1. Reduced Imports
India’s dependency on imported telecom equipment has decreased, insulating the country from external shocks.
2. Export Growth
Exports worth ₹14,963 crore indicate Indian-made products are finding markets abroad, especially in developing countries.
3. Job Creation
Skilled and unskilled employment opportunities have risen, promoting economic inclusion.
4. Strengthened Supply Chains
Local supply chains for components and raw materials have become more robust.
Future Outlook: What’s Next for the PLI Scheme?
Given its success, there are talks of extending and expanding the scheme to cover more products, including:
- 5G and 6G equipment.
- IoT (Internet of Things) devices.
- Advanced semiconductor components.
Moreover, continued focus on design-led manufacturing and R&D investments will further position India as a global telecom hub.
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FAQs on PLI Scheme
What is the main objective of the PLI Scheme for Telecom Products?
The scheme aims to boost domestic manufacturing of telecom products, reduce imports, promote exports, and create jobs.
How much investment has been attracted under this scheme?
As of January 31, 2025, investments worth ₹4,081 crore have been made under the scheme.
What is the total sales achieved through this scheme?
The scheme has generated cumulative sales of ₹78,672 crore, including ₹14,963 crore in exports.
How does the scheme encourage design-led manufacturing?
Companies receive an additional 1% incentive for products designed, developed, and manufactured in India.
Where can I find official information about the PLI scheme?
You can visit the Department of Telecommunications (DoT) official website for more details.
