India is the 2nd largest telecom market in the world with 765.1 million broadband subscribers. The telecom sector provides direct and indirect employment to 4 million people in India and constitutes 7% of all FDI inflows in the country. To attract large-scale investments in telecom equipment manufacturing and augment the domestic production capacity, the Government of India has introduced the Production Linked Incentive Scheme for Telecom and Networking products.
The Production Linked Incentive (PLI) Scheme provides a financial incentive to boost domestic manufacturing and attract investments in the target segments of Telecom and Networking Products. It is estimated that full utilisation of the Scheme funds is likely to lead to incremental production of around ₹ 2.4 lakh crores with exports of around ₹ 2 lakh crores over 5 years. It is also expected that the Scheme will bring in investments of around ₹ 3,000 crores and generate huge direct and indirect employment. This is in line with the larger objective of Make in India.