The telecom equipment manufacturing sector in India has surpassed sales of Rs 50,000 crore ($5.98 billion) under the production-linked incentive (PLI) scheme — generating over 17,800 direct jobs.
India government said the initiative has attracted investments totaling Rs 3,400 crore in three years since the inception of the telecom PLI scheme. The production of telecom equipment has exceeded Rs 50,000 crore, with exports reaching approximately Rs 10,500 crore, according to a news statement from the Ministry of Communications.
The fiscal year 2023-24 saw 370 percent increase in the sales of telecom and networking products by PLI beneficiary companies compared to the base year of FY 2019-20.
The gap between imports and exports of telecom equipment and mobile phone has significantly narrowed. The total value of telecom equipment and mobile phone exports exceeded Rs 1.49 lakh crore, compared to imports of over Rs 1.53 lakh crore in FY 2023-24.
“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,” the ministry stated.
In 2014-15, India was a major importer of mobile phones, producing only 5.8 crore units domestically while importing 21 crore units. By 2023-24, domestic production soared to 33 crore units, with imports plummeting to just 0.3 crore units, and nearly 5 crore units were exported, as per the latest ministry data.
The value of mobile phone exports has increased from Rs 1,556 crore in 2014-15 and Rs 1,367 crore in 2017-18 to Rs 1,28,982 crore in 2023-24. Conversely, the import value of mobile phones has dropped from Rs 48,609 crore in 2014-15 to just Rs 7,665 crore in 2023-24.
The PLI scheme has reduced India’s reliance on imported telecom equipment, achieving a 60 percent import substitution rate. India is now almost self-reliant in the production of antennae, GPON (Gigabit Passive Optical Network), and CPE (Customer Premises Equipment).
Indian manufacturers are increasingly competing on a global scale, offering high-quality products at competitive prices, the government noted.
Over the past five years, the trade deficit in telecom (including both telecom equipment and mobiles) has reduced from Rs 68,000 crore to Rs 4,000 crore. PLI schemes have bolstered the global competitiveness of Indian manufacturers, attracting investments in core competencies and cutting-edge technology.
TelecomLead.com News Desk
