Complete List of Beneficiaries under India’s PLI Scheme for Telecom Sector

Forty-two companies (list in article) have committed to investments worth US$496.37 million in telecom and networking products under India’s PLI Scheme for the telecom sector. These include MSME and foreign companies as well as applicants to the additional incentive under the design-led manufacturing criteria geared towards 5G telecom equipment. India hopes the PLI scheme will generate additional sales of US$29.53 billion and create additional jobs for more than 44,000 persons during the scheme’s implementation period.

India’s Department of Telecommunications (DoT) has approved a total of 42 companies, including 28 micro, small, and medium enterprises (MSMEs), under the PLI Scheme for Telecom and Networking Products as of October 31, 2022 (see official notification).

17 companies have applied for the additional one percent incentive under the design-led manufacturing criteria. 

Many foreign companies choose to access the Indian market by developing a joint venture (JV) relationship with an Indian partner. In the pursuit of the JV strategy, it might make sense to establish a partnership with enterprises that are already beneficiaries of key incentive programs. Moreover, the need to diversify supply chains requires businesses worldwide to expand their sourcing networks. The Indian government hopes that through its PLI initiatives and the corresponding response from domestic and global manufacturers, the country will become a design and manufacturing hub for telecom and networking equipment.

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Altogether, the 42 companies (see list below) have committed to investments worth INR 41.15 billion (US$496.37 million). The government expects this to generate additional sales of INR 2.45 trillion (US$29.53 billion) and create additional employment for more than 44,000 persons during the scheme period.

The federal budget for FY 2022-23 had proposed the basis for a design-led PLI scheme for telecom and networking products to create a robust domestic value chain in India. It would provide additional incentive of one percent over and above the existing incentives for products that are designed and manufactured in India.

India PLI Scheme for Design-Led Manufacturing of 5G Products

The Design-led PLI Scheme was launched in June 2022 and applications were invited from design-led manufacturers, among others, to access incentives under the PLI Scheme for five years, commencing from April 1. 2022.

Existing beneficiaries under the PLI scheme for telecom and networking products were allowed to add more products and apply under the design-led PLI scheme. They were given the option to shift their five-year PLI Scheme period by one year.

22 companies have availed this opportunity of shifting their first year. Among them, 13 companies have applied as fresh applicants.

PLI scheme for Promoting Telecom & Networking Products Manufacturing in India

With the objective to boost domestic manufacturing, investments in, and exports of telecom and networking products, the Department of Telecommunications (DoT) notified the production linked incentive scheme on February 24, 2021.

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The PLI scheme will be implemented with a budget of INR 121.95 billion over a period of five years. In the MSME category, financial allocation will be INR 10 billion. The Small Industries Development Bank of India (SIDBI) has been appointed as the project management agency (PMA) for the PLI scheme.

The scheme is effective from April 1, 2021. Investment made by successful applicants in India from April 1, 2021 onwards and up to financial year (FY) 2024-2025 shall be eligible, subject to qualifying incremental annual thresholds. The support under the Scheme shall be provided for a period of five years, from FY 2021-22 to FY 2025-26. The scheme period was extended as the starting year could be shifted under the modified PLI scheme.

Full list of approved applicants under the PLI Scheme for Telecom and Networking Products

List of beneficiaries and location of investment

Source: Minister of State for Communications, Shri Devusinh Chauhan in a written reply to a question in the lower house of parliament.

This article was originally published November 1, 2022. It was last updated December 22, 2022.

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