Sales in telecom equipment manufacturing have exceeded INR 50,000 crore within three years since the introduction of the Production Linked Incentive (PLI) Scheme for the sector in India.
India’s Department of Telecommunications (DoT) reported that the scheme has drawn investments totaling INR 3,400 crore and facilitated the export of equipment valued at INR 10,500 crore. Additionally, the PLI scheme has created over 17,800 direct jobs along with numerous indirect employment opportunities.
The Department of Telecommunications (DoT) highlighted that the achievement underscores the strong expansion and competitiveness of India’s telecom manufacturing sector, supported by government initiatives promoting domestic production, thus, reducing reliance on imports.
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A Noticeable Market Shift
India's historical dependence on imported telecom equipment has shifted due to initiatives like “Make-in-India” and the PLI scheme, resulting in the production of equipment valued at more than INR 50,000 crore domestically.
According to the government, sales of telecom and networking products from PLI beneficiary companies in FY 2023-24 have surged by 370% compared to the base year (FY 2019-20).
Furthermore, through its support of local manufacturing, the PLI scheme has significantly reduced India's dependence on imported telecom equipment, achieving a 60% substitution rate. Notably, India has achieved near self-sufficiency in antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment).
The government also highlighted that the PLI scheme has spurred substantial growth in both the production and export of mobile phones from India. Government data shows that from 2014-2015, India produced only 5.8 crore units of mobile phones while importing 21 crore units. From 2023-2024, India's mobile phone production surged to 33 crore units, with imports reduced to just 0.3 crore units, and nearly 5 crore units have been exported.
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The Import and Export Disparity
The value of mobile phone exports rose from INR 1,556 crore in 2014-15 and INR 1,367 crore in 2017-18 to INR 1,28,982 crore in 2023-24. In contrast, mobile phone imports, which were valued at INR 48,609 crore in 2014-15, decreased significantly to INR 7,665 crore by 2023-24.
Due to the PLI Scheme for Telecom and Networking Products and other initiatives from the DoT and MEITy (Ministry of Electronics and Information Technology), the disparity between telecom imports and exports has notably narrowed. In FY 2023-24, the combined export value of telecom equipment and mobile phones exceeded INR 1.49 lakh crore, while imports totaled over INR 1.53 lakh crore.
Over the past five years, the trade deficit in telecom, encompassing both telecom equipment and mobiles, has decreased significantly from INR 68,000 crore to INR 4,000 crore, indicating the effectiveness of the PLI Schemes in bolstering global competitiveness among Indian manufacturers.
These initiatives have also fostered investment in essential capabilities and advanced technologies, streamlined operations to achieve economies of scale, boosted export levels, and positioned India favorably within the global value chain, according to a statement released by the DoT.
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