New Delhi: PLI Scheme Propels Telecom Equipment Manufacturing to Rs 50,000 Crore Milestone

NEW DELHI: The Central Government announced on Wednesday that the Telecom PLI scheme within just three years, has attracted investments of Rs 3400 crore. This initiative has propelled telecom equipment production to exceed Rs 50,000 crore. Exports have reached Rs 10500 crore, according to data released by the Centre.

The Ministry of Communications highlighted that the PLI scheme has significantly contributed to production. It has enhanced employment generation economic growth and exports in the country. The Centre emphasized that the scheme has led to the creation of 17,800 direct jobs.

Designed to align with Prime Minister Narendra Modi’s vision of ‘Atmanirbhar Bharat’ (self-reliant India), the PLI scheme aims to position India as a global hub for telecom equipment production. It provides financial assistance to manufacturers based on their “incremental sales from products manufactured in India.”

The scheme covers the manufacture of mobile phones and their components. It has notably boosted production and exports of mobile phones in India. In 2014-15 India produced 58 million units. It imported 210 million units. However, by 2023-24 the scenario had reversed dramatically: India produced 330 million units and imported only three million units. Additionally, India exported close to 50 million units during this period according to the Centre’s data.

The government also reported substantial reduction in the trade deficit for the telecom sector encompassing both telecom equipment and mobile phones. Over the past five years, the trade deficit shrank from Rs 68000 crore to Rs 4,000 crore.

The success of the Telecom PLI scheme showcases the effectiveness of government initiatives. These initiatives foster local production and reduce reliance on imports. The Ministry of Communications commended the efforts. The government's initiatives have successfully promoted local production. They also reduced import dependency and enhanced domestic manufacturing capabilities.

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