Updated on March 06, 2025 01:44:53 PM
The Production Linked Incentive (PLI) Scheme for Telecom and Networking Products targets to make India a global hub for manufacturing cutting-edge telecom and networking products. The PLI Scheme for Telecom and Networking Products offers stimuli that are output based to encourage the local manufacturers to grow in size, leading to increased production affordability and quality to satisfy the increasing consumers’ demand within India for telecom solutions. Through the promotion of both technology development and healthy competitive manufacturing structure, the PLI Scheme for Telecom and Networking Products aims at reducing the reliance on imports and strengthening the supply chain. Similarly, through the : PLI Scheme for Telecom and Networking Products the investment from Indians as well as from other players also increases which also helps in improving the position of India in the Global telecom sector and it also promotes new innovation technologies and makes India as one of the part of Global telecom & Networking solutions.
The Production Linked Incentive (PLI) Scheme for Telecom and Networking Products aims to build India’s manufacturing capabilities in high earned Telecom and Networking technologies required for the Telecommunications industry. The PLI Scheme for Telecom and Networking Products is oriented to stimulate domestic production to decrease import dependence and direct India to become an international center for manufacturing and export of advanced telecom and networking equipment. The PLI Scheme for Telecom and Networking Products provides incentives based on performance to enable companies to adopt new technology and or global standards. The PLI Scheme for Telecom and Networking Products also encourages new generation services, increases employment rate and enhances the strategic position of India in the global telecommunication sector.
TThe Production Linked Incentive (PLI) Scheme for Telecom and Networking Products offers substantial benefits to India's telecom manufacturing sector:
The following table provides data regarding the incentive percentage and its availability for the telecom and networking product items under PLI Scheme for Telecom and Networking Products for MSMEs and non-MSMEs.
1) Incentives for MSMEs
| Year | Incentive Rate | Minimum Cumulative Investment (Excluding Land & Building) | Minimum Incremental Sales Over Base Year (Net of Taxes) | Maximum Eligible Sales Over Base Year (Net of Taxes) |
|---|---|---|---|---|
| 1 | 7% | ≥ 20% of X | 3 * (20% of X) | 20 * (20% of X) |
| 2 | 7% | ≥ 40% of X | 3 * (40% of X) | 20 * (40% of X) |
| 3 | 6% | ≥ 70% of X | 3 * (70% of X) | 20 * (70% of X) |
| 4 | 5% | ≥ X | 3 * X | 20 * X |
| 5 | 4% | - | 3 * X | 20 * X |
Note: X refers to Committed Total Investment by the company over four years, minimum ₹10 Crores for MSMEs.
2) Incentives for Non-MSMEs
| Year | Incentive Rate | Minimum Cumulative Investment (Excluding Land & Building) | Minimum Incremental Sales Over Base Year (Net of Taxes) | Maximum Eligible Sales Over Base Year (Net of Taxes) |
|---|---|---|---|---|
| 1 | 6% | ≥ 20% of X | 3 * (20% of X) | 20 * (20% of X) |
| 2 | 6% | ≥ 40% of X | 3 * (40% of X) | 20 * (40% of X) |
| 3 | 5% | ≥ 70% of X | 3 * (70% of X) | 20 * (70% of X) |
| 4 | 5% | ≥ X | 3 * X | 20 * X |
| 5 | 4% | - | 3 * X | 20 * X |
Note: X refers to Committed Total Investment by the company over four years, minimum ₹100 Crores for non-MSMEs.
The Production Linked Incentive (PLI) Scheme for Telecom and Networking Products is a policy that seeks to make India a Manufacturing Hub of telecom and networking products. The PLI Scheme for Telecom and Networking Products provides incentives that promote domestic production, minimizes the importation risk, and supports the advancement of state-of-the-art technology. The PLI Scheme for Telecom and Networking Products incentives are articulated to both MSMEs and non-MSMEs investments inviting both foreign and domestic investment boosting India's manufacturing environment. Further, through the PLI Scheme for Telecom and Networking Products job creation and export competitiveness and promotion of innovative technologies become possible. The PLI Scheme aligns India to effectively challenge the globalization of the telecom industry and reshape India's recognition as the competitive supplier of telecom and networking products.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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The PLI Scheme for Telecom and Networking Products aims to make India a global hub for manufacturing advanced telecom and networking products by boosting domestic manufacturing, reducing import dependence, attracting investments, and promoting export competitiveness.
Both MSMEs and non-MSMEs engaged in the manufacturing of specified telecom and networking products in India are eligible to apply for the PLI Scheme for Telecom and Networking Products.
Under the PLI Scheme for Telecom and Networking Products, MSMEs are eligible for incentives starting at 7% in the first two years, decreasing to 4% by the fifth year and Non-MSMEs have similar incentives, starting at 6% in the first two years and reducing to 4% by the fifth year.
The PLI Scheme for Telecom and Networking Products supports manufacturing in segments such as core transmission equipment, 4G/5G radio access networks, wireless equipment, customer premises equipment (CPE), enterprise equipment like routers and switches and other telecom products.
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