In a major fillip to the Make in India drive, the production-linked incentive (PLI) scheme for telecommunication and networking equipment has received an investment of Rs 4,081 crore (as of January 31) and registered total sales of Rs 78,672 crore, including Rs 14,963 crore of export sales.
The scheme also provided employment to 26,351 people, according to Dr. Pemmasani Chandra Sekhar, Minister of State for Communications and Rural Development, in a written statement to the Rajya Sabha.
The Department of Telecommunications (DoT) introduced the PLI scheme on February 24, 2021, with a budget outlay of Rs 12,195 crore to enhance domestic production of telecom and networking equipment in India. The scheme guidelines were subsequently modified to include an additional 1% incentive for those products that are designed, developed, and manufactured in India to encourage design-led manufacturing. Additionally, 11 more products were added to the list of approved products as per industry demand.
The scheme also gives companies the flexibility of introducing products that are part of the list approved at any time throughout the duration of the scheme and claim incentives on a quarterly basis.
For 33 telecom and networking products, the PLI scheme gives companies a chance to claim incentive for domestic manufacturing of these products.
Part of a broader government program with an expenditure of Rs 1.97 lakh crore for 14 core sectors, the PLI programs have been the backbone for manufacturing growth. Manufacturing of telecom equipment alone has exceeded Rs 50,000 crore in sales under this program, data available with the government indicates.
India's electronics manufacturing industry has made great strides under the PLI scheme, from being a net importer to a net exporter of mobile phones. Domestic production increased from 5.8 crore units in 2014-15 to 33 crore units in 2023-24, while imports decreased significantly.
Exports stood at 5 crore units, and Foreign Direct Investment (FDI) in the industry increased by 254%, further testifying to the success of the scheme in promoting manufacturing growth and bringing in huge investments.
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