India is preparing a second edition of its telecom production-linked incentive scheme, with the Ministry of Communications shifting the emphasis toward design-led manufacturing and deeper domestic value addition. The first scheme, backed by an outlay of Rs 12,195 crore, closed in March 2026 after approving 42 companies, including 28 MSMEs, and drawing Rs 6,073 crore in investment against an initial target of Rs 4,115 crore. Seventeen firms claimed the extra 1 per cent incentive for design-led manufacturing. The new proposal must clear inter-ministerial talks and consultation before reaching the Union Cabinet.
According to www.tribuneindia.com, the Indian government is considering a second version of its production-linked incentive (PLI) scheme for the telecom industry, with a sharper emphasis on design-driven manufacturing and higher domestic value addition. The Ministry of Communications is developing the proposal, which must clear inter-ministerial discussions before going to the Union Cabinet for approval, according to sources aware of the development.
The sources indicated that the proposal remains under development and would need to pass through the consultation process before being taken to the Cabinet. The plan aims to deepen domestic capabilities in telecom product design and development while raising the share of locally manufactured components and products in the value chain.
Backward integration at the core
The ministry seeks to strengthen backward integration within the domestic telecom manufacturing ecosystem, particularly in design and development. That focus marks a shift from the first scheme’s broader manufacturing push toward the earlier stages of the value chain, where India’s telecom sector remains reliant on imported components.
The first telecom PLI scheme, introduced with an outlay of Rs 12,195 crore, ended in March 2026. It covered telecommunications and networking products and aimed to strengthen domestic manufacturing while reducing dependence on imports, according to the report.
First edition drew 42 approved companies
A total of 42 companies, including 28 micro, small and medium enterprises (MSMEs), were approved under the first scheme. Of these, 17 companies sought an additional 1 per cent incentive offered under the design-led manufacturing category.
The initiative attracted investments worth Rs 6,073 crore, exceeding the initial investment target of Rs 4,115 crore. The overshoot indicates that approved participants committed capital faster than the government had projected when the scheme was launched.
The proposed second edition aims to build on the existing framework, with a greater focus on domestic design capabilities and increased value addition within India’s telecom manufacturing ecosystem. The sources said the proposal would still need to go through the consultation process before being taken to the Cabinet.
Source: tribuneindia.com
Compiled from international media by the SCI.AI editorial team.
