The clearance of 42 enterprises, including 28 MSMEs, under the PLI Scheme for Telecom and Networking Products by the Ministry of Communications is a significant boost to Prime Minister Shri Narendra Modi's vision of Atmanirbhar Bharat. Of those, 17 businesses have requested an additional 1% incentive based on design-led manufacturing criteria. Rs 4,115 crores have been pledged to investment by these 42 enterprises (see annexe). Over the course of the scheme, this is anticipated to result in increased sales of Rs 2.45 lakh crores and more than 44,000 new jobs.
Additional Information Regarding the PLI Program’s Growth
Design-led PLI Scheme for telecom and networking devices was introduced in the Union budget for FY2022-23 in an effort to build a strong domestic value chain. It offered a 1% extra incentive on top of the already current ones for goods that are designed and produced in India. Design-led companies and others were encouraged to submit proposals for the Design-led PLI Scheme, which was introduced in June 2022. The PLI Scheme will offer incentives for five years starting on April 1, 2022.
The companies already participating in the PLI scheme for telecom and networking goods were permitted to add new items and submit applications for the design-led PLI scheme. Moreover, they received the benefit of a one-year extension to the five-year PLI scheme tenure. There were 22 enterprises that took advantage of the possibility to move their first year, as well as 13 companies applying fresh.
The fervent response from domestic and international companies to the government of India's specific measures to promote telecom equipment production shows the government's initiatives have great potential. The design and production of telecom and networking equipment is about to move to India.