The Indian telecom manufacturing sector has received a significant boost through the Production Linked Incentive (PLI) scheme, introduced by the Department of Telecommunications (DoT) in 2021. With an outlay of ₹12,195 crore, the scheme aims to encourage domestic production of telecom and networking products, reducing import dependency and enhancing India’s position as a global manufacturing hub.
As of January 31, 2025, the scheme has driven investments worth ₹4,081 crore, resulting in total sales of ₹78,672 crore. A remarkable ₹14,963 crore of this comes from exports, signaling India’s growing competitiveness in the global telecom market. Additionally, the initiative has generated employment for 26,351 individuals, offering a much-needed boost to job creation in the sector.
Recognizing the evolving needs of the industry, the government has made key amendments to the scheme to further support manufacturers. A crucial update is the introduction of an additional 1% incentive for products that are entirely designed, developed, and manufactured in India, reinforcing the push towards design-led manufacturing. Moreover, the list of approved products under the scheme has been expanded, with 11 new additions to align with industry requirements. To provide greater flexibility, companies now have the option to include additional approved products at any time during the scheme’s tenure.
Another major reform allows companies to apply for incentives on a quarterly basis rather than waiting for annual claims. This change is expected to improve cash flow for manufacturers and enhance ease of doing business in the sector. Currently, the PLI scheme covers 33 telecom and networking products, ensuring a broad spectrum of opportunities for manufacturers to benefit from government support.
These updates were shared by Dr. Pemmasani Chandra Sekhar, Minister of State for Communications and Rural Development, in a written response to the Rajya Sabha on March 20, 2025. The government’s continued efforts to refine the PLI scheme reflect its commitment to strengthening India’s manufacturing ecosystem, fostering innovation, and positioning the country as a key player in the global telecom supply chain.
