PLI effect: Telecom production crosses Rs 50k-cr mark

Within three years of the telecom Production Linked Incentive (PLI) Scheme, the equipment production has exceeded the milestone of Rs 50,000 crore. The scheme attracted an investment of Rs 3,400 crore, boosted exports worth around Rs 10,500 crore, and created more than 17,800 direct jobs and many more indirect jobs, an official press release said.

“This milestone underscores the robust growth and competitiveness of India’s telecom manufacturing industry, driven by government initiatives to promote local production and reduce import dependency,” it said, adding that the scheme also offers financial incentives to manufacturers based on their incremental sales from products manufactured in India.

The PLI Scheme for large-scale electronic manufacturing of electronics covers the manufacture of mobile phones and its components.

India was a large importer of mobile phones in 2014-15, when only 5.8 crore units were produced in the country, while 21 crore units were imported. In 2023-24, 33 crore units were produced in India and only 0.3 crore units were imported and close to 5 crore units were exported, the release said.

The value of exports of mobile phones has gone up from Rs 1,556 crore in 2014-15 and Rs 1,367 crore in 2017-18 to Rs 128,982 crore in 2023-24. Import of mobile phones was valued at Rs 48,609 crore in 2014-15, which has dropped to Rs 7,665 crore in 2023-24.

Telecom equipment includes intricate items like radios, routers, and network equipment. Further, companies are permitted by the government to avail benefits for producing 5G equipment. 5G telecom equipment manufactured in India is currently being exported to North America and Europe, the release said.

In the last five years, the trade deficit in telecom (both telecom equipment and mobiles put together) has reduced from Rs 68,000 crore to Rs 4,000 crore.