The telecom sector is evolving from a service-led growth model to a robust manufacturing ecosystem
The telecommunications sector in India has grown to become the world’s second-largest, contributing around 6.5 per cent to the nation’s GDP and emerging as a key economic growth engine. While we take pride in this impressive growth, there is something even more exciting – the rise of the telecom manufacturing ecosystem. India’s growth as a telecom equipment manufacturing destination can be attributed to the ‘Make-in-India’ and ‘Atmanirbhar Bharat’ initiatives launched by the Government in recent years.
The Production Linked Incentives (PLI), launched in 2020, and its subsequent amendments in 2022 to facilitate design-led manufacturing at an additional incentive rate with an allocated sum of Rs 4,000 crores also provided a major boost to telecom manufacturing in India.
As per the latest update by the Ministry of Communications, sales of telecom equipment have surpassed the Rs 50,000 crore milestone under the PLI scheme, with exports at about Rs 10,500 crore. During this period, India exported mobile phones worth Rs 1.28 lakh crores and with 300 million units produced, it has emerged as the second-largest producer of mobile phones in the world.