New Delhi, Apr 30 (KNN) Driven by the government's Production Linked Incentive (PLI) scheme, India's domestic telecom equipment production surpassed the Rs 45,000 crore milestone in the fiscal year 2023-24, with exports contributing around Rs 10,500 crore.

“Telecom equipment manufacturing was once a distant dream for our country, but the Make-in-India and PLI programmes have truly succeeded,” Telecom Minister Ashwini Vaishnaw told ET.

He highlighted India's transition from being a telecom gear importer for decades to a manufacturing hub producing over Rs 45,000 crore worth of equipment annually.

The sector encompasses complex products like radios, routers, and network equipment. The government has also incentivised the local production of 5G fixed wireless access (FWA) equipment, which leading telecom operators like Reliance Jio and Bharti Airtel are banking on to monetise their 5G networks.

According to government data, global firms contributed Rs 36,537.68 crore to the total sales of Rs 45,988.54 crore till February, while domestic companies accounted for Rs 6,768.74 crore and Micro, Small, and Medium Enterprises (MSMEs) contributed Rs 2,682.12 crore.

In terms of employment, domestic companies created 14,525 jobs, followed by MSMEs (2,984 jobs) and global firms (2,041 jobs).

Indian-made telecom equipment is being exported to North America and Europe, with top global telecom companies as customers. “Many of our Indian manufacturers are contributing design inputs to the products. Products are designed in India, made in India, and then exported, with excellent quality,” said Minister Vaishnaw.

The Department of Telecommunications (DoT) had notified the PLI scheme for telecom and networking products in February 2021, with an outlay of Rs 12,195 crore over five years. Initially, 31 companies were approved, and the scheme was later amended to facilitate design-led manufacturing and extend the timeline due to COVID-related supply chain disruptions.

Prominent firms participating in the telecom PLI scheme include Samsung, Dixon Technologies, HFCL, Jabil, Flextronics, Sanmina, Rising Star, Nokia, and Tejas. Nokia and Ericsson have utilised a significant portion of India-made radios for rolling out the 5G networks of Reliance Jio and Bharti Airtel.

To further boost equipment manufacturing, the government has tightened rules around custom duty payments by gear importers, aiding local production of routers, modems, and set-top boxes.

(KNN Bureau)