Telecom equipment and manufacturing crosses Rs.45,000 crore mark

Telecom equipment manufacturing and exports have emerged as a significant success story following smartphone exports, with the sector crossing the milestone of ₹45,000 crore in production for FY24, supported by the Centre’s production linked incentive (PLI) scheme. According to government data shared exclusively with ET, exports reached around ₹10,500 crore, with over 19,500 direct jobs created.

Telecom Minister Ashwini Vaishnaw highlighted the success of the Make-in-India initiative and the PLI programme in transforming India from a telecom gear importer to a manufacturer of equipment worth more than ₹45,000 crore. The telecom equipment sector encompasses complex products such as radios, routers, and network equipment. The PLI scheme has facilitated the production of 5G fixed wireless access (FWA) equipment, with leading telcos like Reliance Jio and Bharti Airtel investing in FWA to leverage 5G capabilities.

Government data revealed that global firms contributed significantly to total sales, with domestic firms and MSMEs also making substantial contributions. Domestic companies led in job creation, followed by MSMEs and global firms. India-made telecom equipment is being exported to North America and Europe, with Indian manufacturers contributing design inputs and ensuring high product quality.

The PLI scheme for telecom and networking products, launched in February 2021, offers incentives of 4% to 7% for different categories and years. The scheme was amended in April 2022 to facilitate design-led manufacturing, with an additional incentive rate and extension by a year due to Covid-related disruptions. A total of 42 firms, including 28 MSMEs, were selected under the revised scheme, committing to significant investments and job creation targets over the scheme period. The Industry Outlook