What's Happening?
India's Production Linked Incentive (PLI) scheme is significantly impacting the telecom and networking products sector, with a reported investment of Rs 4,646 crore as of September 30, 2025. The initiative, aimed at bolstering domestic manufacturing and establishing
a robust 5G ecosystem, has seen 42 companies, including 28 MSMEs and 14 non-MSMEs, approved under the scheme. These companies have committed over Rs 4,014 crore in investments. The scheme has also led to net sales of Rs 96,240 crore, with exports contributing Rs 19,240 crore. Additionally, the initiative has created nearly 30,000 direct jobs, with expectations to generate over 44,000 jobs in the long term.
Why It's Important?
The PLI scheme is crucial for reducing India's reliance on imports, particularly for advanced technologies like 5G. By promoting design-led manufacturing, the scheme aims to create a comprehensive ecosystem for telecom and networking products, encouraging both domestic and international companies to manufacture in India. This not only strengthens India's position in global supply chains but also boosts local employment and exports. The success in the telecom sector is mirrored in other areas, such as white goods manufacturing, where similar incentives are driving significant investments and job creation.
What's Next?
The continued success of the PLI scheme in telecom and other sectors suggests a strategic shift towards enhancing India's manufacturing capabilities. As more companies participate, the government anticipates a substantial increase in domestic value addition, potentially reaching 75-80% in sectors like white goods. This could lead to further integration of India into global supply chains, increased exports, and sustained job growth. The government's broader strategy involves using targeted incentives to foster economic growth and technological advancement.
