India’s Production Linked Incentive (PLI) scheme for telecom and networking products has delivered major results since its launch by the Department of Telecommunications (DoT) in February 2021. With a total investment of ₹4,081 crore made by beneficiaries as of January 31, 2025, the scheme has generated ₹78,672 crore in sales, including ₹14,963 crore in exports.
In addition to its economic impact, the scheme has led to the creation of 26,351 jobs, supporting India’s broader vision of self-reliance and domestic capacity building in telecom manufacturing.
New Amendments Encourage Design-Led Manufacturing
To strengthen India’s innovation ecosystem, the government has amended the PLI guidelines to include:
An additional 1% incentive for products that are designed, developed, and manufactured in India.
Inclusion of 11 new products to the approved list based on industry needs.
Flexibility for companies to add approved products at any time during the scheme period.
A provision to apply for incentives on a quarterly basis, giving companies more operational freedom.
These changes are aimed at encouraging deeper product development, giving a boost to companies involved in R&D and in-house design, especially SMEs and startups looking to move beyond assembly-based operations.
Also read: India’s 5G Users to Hit 770M by 2028: Nokia
Coverage and Participation
The PLI scheme now covers 33 telecom and networking products, for which companies can claim performance-based incentives. With the expanded product list and relaxed application process, more firms are expected to participate—especially those operating in fast-growing sectors such as 5G infrastructure, IoT, and network equipment manufacturing.
The information was shared by Dr. Pemmasani Chandra Sekhar, Minister of State for Communications and Rural Development, in a written reply in the Rajya Sabha on March 20, 2025.
As India pushes forward with its self-reliant manufacturing goals, the amended PLI scheme offers new opportunities for MSMEs, OEMs, and component makers in the telecom sector to scale up, innovate, and contribute to the country’s economic transformation.
