Government to launch second version of Telecom PLI scheme to boost local manufacturing

The Government is working on introducing the second version of the Telecom Production-Linked Incentive (PLI) scheme to enhance local value addition in India's telecom equipment ecosystem and promote design-led manufacturing. According to a report by Business Standard, the Ministry of Communications is preparing a proposal in this regard.

According to an official source, the proposal will be sent for inter-ministerial consultation before being submitted to the Union Cabinet for approval. The Ministry aims to create an ecosystem based on backward integrated design and development to achieve higher local value addition in the country.

The first version of the Telecom PLI scheme was implemented with an outlay of ₹12,195 crore, which will conclude in March 2026. Under this scheme, a total of 42 companies, including 28 MSMEs, were approved for telecom and networking products. Against a target of ₹4,115 crore under this scheme, an investment of ₹6,073 crore was attracted. Additionally, 17 companies have applied for an additional 1 per cent incentive under the design-led manufacturing criterion.

The Telecom PLI scheme was a government initiative to provide incentives in the manufacturing sector, aimed at accelerating local manufacturing and investment.