Govt's Recent Incentive Scheme to Promote Telecom Manufacturing

The government has paid ₹331.86 crore for FY 2021-22 to 18 of the 42 beneficiaries of the telecom PLI (production-linked incentive) scheme, according to a reply to one question in Parliament till October 31, 2024. Responding to a query in the Lok Sabha, Minister of State for Telecom Pemmasani Chandra Sekhar shared that the scheme’s beneficiaries have created 25,359 jobs and recorded product sales of ₹67,708 crore, including exports worth ₹13,007 crore. This initiative will help fulfill one of the government’s goals of promoting domestic telecom manufacturing and boosting economy.

The top beneficiaries of the incentives include Jabil Circuit India, which got ₹78.62 crore, Nokia Solutions and Networks India ₹46.92 crore, and Tejas Networks ₹32.66 crore. Other key beneficiaries are technology vendors like Flextronics Technologies India, which received ₹30.6 crores, CommScope India ₹25.95 crore, and NeoLync Tele Communications ₹21.79 crore. Besides, CP Bharat Electronics was engaged, Rising Stars Hi-Tech also participated and received ₹12 crore, while Sanmina-SCI India and GX India received ₹11.74 crore. A few other companies under the scheme received incentives lower than ₹10 crore, indicating that the benefits were not limited to a few big firms but extended to a wide range of industry participants.

The telecom PLI scheme includes 42 participants, out of which 28 are micro, small, and medium enterprises (MSMEs). In aggregate, these firms have planned investments worth ₹4,014 crore, wherein ₹3,629 crore has come from non-MSMEs and ₹369 crore from MSMEs till October 31. This complements the government’s vision of making it easier to manufacture telecom equipment, create employment, and boost exports, which is a significant step in India’s pursuit of telecom self-reliance.