DoT To Present Strong Case For Telecom PLI Scheme Despite Slow Uptake

Despite only half the firms claiming incentives, with rising exports, new factories, and global giants onboard, India’s telecom PLI scheme eyes more jobs and self-reliance.  

The Department of Telecommunications (DoT) is preparing a positive report on the performance of the telecom production-linked incentive (PLI) scheme. According to a report by the Financial Express, the assessment will be presented at a review meeting chaired by the Cabinet Secretary, which will examine progress across all PLI programmes.

While only half of the 42 approved firms have so far claimed incentives, officials said the scheme has already achieved its larger goals of boosting production, investment and exports. They noted that many companies are still contributing significantly despite not drawing payouts.

As of 31 July 2025, cumulative sales under the telecom PLI reached ₹911.25 billion, according to DoT data. Exports accounted for ₹178.09 billion, while investments stood at ₹45.16 billion. The scheme has created 29,117 jobs, and the government has disbursed ₹15.86 billion in incentives. Over its five-year tenure to FY27, the programme is expected to generate more than ₹2 trillion of additional output and around 45,000 direct jobs.

Officials highlighted several achievements. Sales of telecom and networking products in FY25 were over six times higher than in FY20, while exports more than tripled. Over the past three years, 22 new manufacturing units have been established across 10 states. BSNL’s 4G rollout used PLI-backed indigenous equipment, and 5G deployment has drawn heavily on locally produced gear.

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The report stated that India has now reached near self-reliance in critical broadband equipment such as GPON ONTs and customer premises devices. Global majors such as Nokia, Ericsson, and Cisco have begun producing in India through local partners, including Jabil and Flex.

The scheme, launched in 2021 with an outlay of ₹121.95 billion, offers 4–6% incentives on incremental sales, with extra benefits for MSMEs and design-led manufacturing. Its tenure was extended to FY27 to offset Covid-related disruptions.

Though firms, including Samsung, HFCL, Netweb Technologies, Kaynes, Optiemus and ITI, have yet to claim incentives, officials said capacity expansion is underway. Mid-sized players, such as Tejas Networks, Jabil, Flex, Foxconn’s Rising Stars Hi-Tech, and Syrma SGS, have been quicker to tap benefits.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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