Lok Sabha Question No. 1399 (UNSTARRED), answered on 2024-12-04
Subject: Reduce Import Dependency for Telecom
Ministry: COMMUNICATION
Asked by: Smt. Poonamben Hematbhai Maadam

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 1399 TO BE ANSWERED ON 4 TH  DECEMBER, 2024

## REDUCE IMPORT DEPENDENCY FOR TELECOM

## 1399.   SMT. POONAMBEN HEMATBHAI MAADAM:

Will the Minister of COMMUNICATION be pleased to state:

(a) whether the country is taking steps to reduce import dependency for telecom and networking products;

- (b) if so, the details thereof;
- (c) details of the current status of telecom manufacturing in the country; and
- (d) details of the telecom equipment exported during the last ten years?

## ANSWER

## MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT (DR. PEMMASANI CHANDRA SEKHAR)

(a) to (c) Yes,  the  Government  is  committed  to  reduce  import  dependency  of  the  telecom industry by encouraging telecom equipment manufacturing industry in the country. In order to reduce import  dependency,  the  Production  Linked  Incentive  (PLI)  Scheme  for  telecom  and  networking products was launched in June, 2021. Salient features of the scheme are as under:

-  Total financial outlay of Rs. 12,195 Crore.
-  Total of 33 telecom and networking products.
-  Incentives ranging from 4 to 7%.
-  Additional 1% incentive for MSMEs for first 3 years.
-  Additional 1% incentive for products 'Designed in India'.

As  on  30.09.2024,  sales  of  Rs.  65,320  Crore  including  exports  of  Rs.  12,384  has  been achieved for telecom equipments manufactured under PLI.

Further,  steps  taken  by  the  Government  to  encourage  indigenous  telecom  equipment manufacturing are as follows:

- i. Telecom Technology Development Fund (TTDF) Scheme: The TTDF scheme was launched  on  01.10.2022  with  the  aim  at  funding  research  and  development  of technologies, products and services for providing telecom services in rural and remote areas.
- ii. Digital Communications Innovation Square (DCIS) Scheme: The DCIS Scheme was launched in 2021 to support translation of innovative ideas and knowledge in engineering  into  pilot  scale  operation,  field  deployment  or  viable  technology development.

- iii. Production Linked  Incentive Scheme  (PLI)  for Large  Scale Electronics Manufacturing: The scheme was notified on 1 st  April, 2020 to provide incentive to eligible companies on incremental sales (over base year) involved in mobile phone manufacturing  and  manufacturing  of  specified  electronic  components,  including Assembly, Testing, Marking and Packaging (ATMP) units.
- iv. Scheme  for  Promotion  of  Manufacturing  of  Electronic  Components  and Semiconductors (SPECS): The scheme was notified on 1 st   April, 2020 to provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, specialized subassemblies and capital goods for manufacture of aforesaid goods.
- v. Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme: The scheme was  notified on  1 st April,  2020  to  provide  support  for  creation  of  world  class infrastructure  along  with  common  facilities  and  amenities,  including  Ready  Built Factory (RBF) sheds/ Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the country. The scheme provides  financial  assistance  for  setting  up  of  both  EMC  projects  and  Common Facility Centres (CFCs) across the country.

(d) The  export  of  telecom  products  has  reached  Rs.  1,49,563  Crore  in  the  FY2023-2024  as compared to Rs. 9,978 Crore in the FY2014-2015.

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