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Telecom Equipment sales cross ₹50,000 crore under PLI scheme
Context: Government push via Production linked Incentive (PLI) schemes boosts production, resulting in balanced telecom equipment exports (₹1.49 lakh crore) and imports (₹1.53 lakh crore) for FY 2023-24.
Key Achievements of the PLI Scheme in India’s Telecom Sector
- Industry Growth: Telecom manufacturing sales exceeded ₹50,000 crore under PLI scheme, with a 370% increase in FY 2023-24 compared to FY 2019-20.
- Job Creation: It created over 17,800 direct jobs and many more indirect jobs.
- Reduced Import Dependency: It reduced reliance on imported telecom equipment by 60%, making India self-reliant and enhancing national security.
- Global Competitiveness: Indian manufacturers are increasingly competing on a global scale, offering high-quality products at competitive prices.
- Telecom Equipment Exports: Exports totaled approximately ₹10,500 crore, with significant shipments to North America and Europe.
- Mobile Phone Production: In 2023-24, 33 crore units were produced in India, with only 0.3 crore units imported and nearly 5 crore units exported.
- Export value increased from ₹1,556 crore in 2014-15 to ₹1,28,982 crore in 2023-24.
- Trade Balance: The trade deficit in telecom reduced from ₹68,000 crore to ₹4,000 crore over five years.
Government Initiatives for Telecom Sector:
- PLI Scheme for Large Scale Electronic Manufacturing: Attracted ₹3,400 crore investment in three years.
- Supports Atma Nirbhar Bharat by promoting local production and reducing import dependency.
- 6G innovation group
- Bharatnet project
- Prime Minister Wi-Fi Access Network Interface (PM-WANI)
- Telecom Technology Development Fund (TTDF).
- FDI cap in the telecom sector increased to 100% from 74%.
India’s Telecom Industry:
- Second largest globally with 1.091 billion subscribers (wireless + wireline).
- Overall tele-density: 85.76%.
- With Rural tele-density of 59.44% and Urban tele-density of 133.42%.
- India poised to be the world’s second-largest smartphone market by 2025.
- India is placed at 60th rank as per Network Readiness Index 2023.