Telecom equipment sales exceed Rs 50,000 cr, 17,000 jobs created within 3 years of PLI launch: Govt

In the fiscal year 2023-24, sales of telecom and networking products by companies benefiting from the PLI scheme increased by 370 percent compared to the base year of 2019-20, the government claimed.

Local production of telecom equipment by domestic and multinational companies leveraging the production-linked incentives (PLI) scheme has surpassed the milestone of Rs 50,000 crore, with exports totaling around Rs 10,500 crore and the creation of more than 17,800 direct jobs, the ministry of communications said in a statement on July 10.

The telecom PLI scheme, within three years, has attracted Rs 3,400 crore in investment, the ministry reported. "This achievement highlights the robust growth and competitiveness of India’s telecom manufacturing sector, fueled by government initiatives to enhance local production and minimize import dependency," it added.

In the fiscal year 2023-24, sales of telecom and networking products by companies benefiting from the PLI scheme increased by 370 percent compared to the base year of 2019-20, the government claimed. The scheme has significantly reduced the country's reliance on imported telecom equipment, achieving a 60 percent import substitution rate.

India has become nearly self-sufficient in producing antennae, gigabit passive optical networks (GPON), and consumer premises equipment (CPE), the ministry noted. PLI-approved vendors are exporting 5G equipment to North America and Europe.

"The PLI initiative for telecom has not only spurred economic growth but also created substantial employment opportunities across the value chain, from manufacturing to research and development, generating over 17,800 direct jobs and many more indirect jobs," the ministry stated.

The PLI scheme for large scale electronic manufacturing has significantly boosted both the production and export of mobile phones from India, according to the statement. In 2014-15, India was a major importer of mobile phones, with only 5.8 crore units produced locally and 21 crore units imported. By 2023-24, India produced 33 crore units, imported only 0.3 crore units, and exported nearly 5 crore units.

The value of mobile phone exports rose 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. Mobile phone imports decreased from Rs 48,609 crore in 2014-15 to just Rs 7,665 crore in 2023-24.

Thanks to the PLI schemes for telecom and networking products and related initiatives, the gap between telecom imports and exports has narrowed significantly. The total value of exported telecom equipment and mobiles exceeded Rs 1.49 lakh crore, compared to imports of over Rs 1.53 lakh crore in FY 2023-24.

Over the past five years, the trade deficit in telecom (both equipment and mobiles combined) has reduced from Rs 68,000 crore to Rs 4,000 crore, making Indian manufacturers more globally competitive, the ministry concluded.