PLI Scheme Propels Telecom Equipment Sales Beyond Rs 50,000 Cr
PLI Scheme Propels Telecom Equipment Sales Beyond Rs 50,000 Cr
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Record Telecom Equipment Sales of Rs 50,000 Crore Achieved Through PLI Scheme: Sales of telecom equipment have crossed the Rs 50,000 crore milestone thanks to the Production Linked Incentive (PLI) scheme, according to a recent press release by the Ministry of Communication. This achievement highlights the success of government efforts to boost domestic manufacturing and reduce reliance on imports, in line with Prime Minister Narendra Modi's 'Atmanirbhar Bharat' vision.

Since the PLI scheme's launch three years ago, the telecom sector has attracted Rs 3,400 crore in investments and exceeded Rs 50,000 crore in equipment production. Exports under the scheme have reached approximately Rs 10,500 crore. This progress has created over 17,800 direct jobs and numerous indirect employment opportunities, demonstrating the strong growth and competitiveness of India's telecom manufacturing industry.

Government initiatives to promote local production have been crucial in this success, positioning India as a global hub for telecom equipment manufacturing. The PLI Scheme for Large Scale Electronic Manufacturing, which includes mobile phones and components, has significantly boosted both production and export figures.

India's mobile phone manufacturing has also seen substantial improvements. From producing 5.8 crore mobile phones and importing 21 crore units in 2014-15, the country manufactured 33 crore phones domestically in 2023-24, with only 0.3 crore units imported and nearly 5 crore units exported. The value of mobile phone exports has surged from Rs 1,556 crore in 2014-15 to Rs 1,28,982 crore in 2023-24, reflecting significant growth and reduced import dependence.

Traditionally a net importer of telecom gear, India has undergone a transformative shift due to initiatives like Make-in-India and the PLI scheme. Domestic telecom equipment production now exceeds Rs 50,000 crore, marking a 370 percent increase since FY 2019-20. This growth has generated over 17,800 direct jobs and many roles across the manufacturing value chain, fostering economic development.

The PLI scheme has significantly reduced India's reliance on imported telecom equipment by 60 percent, enhancing national security and self-reliance in critical technologies. Indian manufacturers are now competing globally, particularly in advanced telecom technologies like 5G.

Under the leadership of the Department of Telecommunications (DoT) and Ministry of Electronics and Information Technology (MeitY), initiatives like the PLI Scheme for Telecom and Networking Products have narrowed the gap between telecom imports and exports. In FY 2023-24, combined exports of telecom equipment and mobiles reached over Rs 1.49 lakh crore, just shy of the Rs 1.53 lakh crore import value, highlighting India's growing export capabilities.

Communications and Electronics Minister Ashwini Vaishnaw remarked on X, formerly known as Twitter, about the remarkable progress in mobile phone, electronics, and telecom product manufacturing under the PLI scheme. He highlighted the increase from 5.8 crore to 33 crore mobile phones produced domestically and the significant export achievements.

Over the past five years, the trade deficit in telecom products has decreased from Rs 68,000 crore to Rs 4,000 crore, showcasing the PLI schemes' success in enhancing India's global competitiveness and attracting investments in new technologies.

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