India Reduces Telecom Import Dependency with Aggressive Manufacturing Push
Key Highlights
- PLI Scheme has led to sales of ₹65,320 Crore, including ₹12,384 Crore in exports.
- Telecom exports grew from ₹9,978 Crore in FY 2014-15 to ₹1,49,563 Crore in FY 2023-24.
- Government incentives for R&D and innovation aim to ensure telecom services reach rural and remote regions.
- Comprehensive support for infrastructure and ecosystem development through schemes like SPECS and EMC 2.0.

India is making significant strides in reducing import dependency in the telecom sector by bolstering domestic manufacturing. The government’s strategic initiatives, such as the Production Linked Incentive (PLI) Scheme for telecom and networking products, have not only enhanced local production but also boosted exports. Here’s a detailed look at the measures and achievements shaping India’s telecom manufacturing sector.
Key Initiatives to Boost Domestic Telecom Manufacturing
Production Linked Incentive (PLI) Scheme
Launched in June 2021, the PLI Scheme for telecom and networking products has been a game-changer for the sector.
- Total Financial Outlay: ₹12,195 Crore.
- Scope: Covers 33 telecom and networking products.
- Incentives: Ranges between 4% and 7%, with additional benefits:
- 1% Incentive: For MSMEs during the first three years.
- 1% Incentive: For products designed in India.
As of September 30, 2024, the PLI Scheme has achieved impressive results:
- Total Sales: ₹65,320 Crore.
- Exports: ₹12,384 Crore.
Telecom Technology Development Fund (TTDF)
Introduced on October 1, 2022, the TTDF Scheme supports R&D for telecom services in rural and remote areas. It aims to develop innovative technologies tailored to India’s diverse needs.
Digital Communications Innovation Square (DCIS)
Launched in 2021, this scheme facilitates translating engineering ideas into operational prototypes, pilot-scale operations, and commercially viable technologies.
Additional Incentive Schemes Supporting the Sector
- PLI for Large Scale Electronics Manufacturing:
- Launched in April 2020, incentivizes mobile phone and electronic component manufacturing.
- Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS):
- Provides 25% capital expenditure incentives for downstream electronic goods.
- Modified Electronics Manufacturing Clusters (EMC 2.0):
- Offers financial support for infrastructure, including ready-built factory sheds and common facility centers to attract global manufacturers.
Achievements in Telecom Manufacturing and Exports
The government’s proactive measures have led to unprecedented growth in the export of telecom products:
- FY 2023-24 Exports: ₹1,49,563 Crore.
- Comparison: This marks a significant leap from ₹9,978 Crore in FY 2014-15.
India’s telecom manufacturing ecosystem is being transformed with the twin goals of fostering innovation and boosting exports. By reducing reliance on imports and enhancing domestic capabilities, the country is positioning itself as a global hub for telecom equipment manufacturing.
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