India’s ambitious Production-Linked Incentive (PLI) scheme for telecom and networking equipment has received renewed support from the Department of Telecommunications (DoT), even as nearly half of the participating firms failed to meet the eligibility criteria for incentives in the latest review cycle. The DoT’s endorsement comes amid growing concerns over execution gaps, delayed investments, and missed production thresholds by several players.
Launched in 2021 with a ₹12,195 crore outlay, the telecom PLI scheme was designed to boost domestic manufacturing, reduce import dependency, and position India as a global hub for telecom infrastructure. However, the third-year assessment revealed that only 26 out of 56 approved companies qualified for disbursement of incentives, raising questions about the scheme’s operational efficiency and industry readiness.
Despite the shortfall, the DoT has reiterated its commitment to the scheme, stating that the PLI framework remains “critical to India’s telecom self-reliance goals” and will be recalibrated to support firms facing genuine operational challenges. Officials confirmed that the ministry is considering a flexible compliance window and enhanced handholding for MSMEs and startups.
Telecom PLI Scheme – Year 3 Performance Snapshot
| Parameter | Value / Status | Commentary |
|---|---|---|
| Total Approved Firms | 56 | Includes large, MSME, and startups |
| Firms Eligible for Incentives | 26 | Met investment and production norms |
| Firms Missing Targets | 30 | Cited delays in capex and approvals |
| Total Incentive Disbursed (FY25) | ₹1,420 crore | Up from ₹1,100 crore in FY24 |
| DoT’s Position | Continued support with tweaks | Focus on long-term ecosystem growth |
Among the firms that missed out are several mid-sized manufacturers and new entrants who struggled with supply chain disruptions, delayed land acquisition, and slower-than-expected demand for 5G components. Industry bodies have urged the government to consider a grace period and allow partial incentive disbursement based on verified progress.
A senior DoT official said, “We understand that some companies are facing genuine bottlenecks. The idea is not to penalize but to enable. We are working on a revised compliance framework that balances accountability with support.”
PLI Scheme – Key Challenges Faced by Telecom Firms
| Challenge Area | Impact on Firms | Suggested Policy Response |
|---|---|---|
| Supply Chain Delays | Missed production targets | Local sourcing incentives |
| Capex Bottlenecks | Incomplete infrastructure setup | Extended investment timelines |
| Regulatory Approvals | Delayed factory commissioning | Single-window clearance mechanism |
| Skilled Workforce | Talent gaps in Tier 2/3 cities | Training subsidies, skilling programs |
| Market Demand | Slow uptake of 5G hardware | Procurement support via PSUs |
Despite the setbacks, several top-tier firms including HFCL, Tejas Networks, VVDN Technologies, and STL have met their targets and received incentives. These companies have also expanded their export footprint, with shipments to Southeast Asia, Africa, and Europe.
Tejas Networks, for instance, reported a 28% YoY increase in telecom equipment exports, while HFCL announced fresh investments in fiber optic cable manufacturing. These success stories have been cited by the DoT as proof of the scheme’s long-term viability.
Top Performing Firms Under Telecom PLI – FY25
| Company Name | Segment Focus | Incentive Received (₹ crore) | Export Growth (%) | Expansion Plans |
|---|---|---|---|---|
| Tejas Networks | Optical & wireless gear | 210 | +28% | New plant in Tamil Nadu |
| HFCL | Fiber optics, routers | 185 | +22% | R&D hub in Hyderabad |
| STL | Optical connectivity | 160 | +19% | JV in Europe |
| VVDN Technologies | IoT & 5G components | 145 | +25% | New campus in Gurugram |
Industry leaders have welcomed the DoT’s proactive stance, but have also called for greater transparency in incentive calculations and faster grievance redressal. The Telecom Equipment Manufacturers Association (TEMA) has submitted a proposal seeking quarterly reviews and real-time dashboards to track compliance.
The DoT is also exploring integration of the PLI scheme with the upcoming Bharat 6G Mission, aiming to align domestic manufacturing with future technology standards. Officials hinted that select firms may be onboarded for pilot production of 6G-ready modules by mid-2026.
Expert Reactions – Telecom PLI Scheme Review
| Name | Role/Title | Reaction Quote |
|---|---|---|
| Rajan Mathews | Telecom Policy Analyst | “PLI needs agility. DoT’s support is timely.” |
| Nandita Mathur | Industry Consultant | “Execution gaps must be addressed with urgency.” |
| Mahesh Uppal | Telecom Strategist | “The scheme is sound, but MSMEs need tailored support.” |
| Aruna Sundararajan | Former Telecom Secretary | “PLI must evolve with tech cycles and market realities.” |
Social media sentiment around the scheme remains mixed. While many praised the government’s continued backing, others expressed concern over the high dropout rate and called for more inclusive policy design. Hashtags like #TelecomPLI, #MakeInIndia, and #DigitalBharat trended across platforms.
Public Sentiment – Telecom PLI Scheme Update
| Platform | Engagement Level | Sentiment (%) | Top Hashtags |
|---|---|---|---|
| Twitter/X | 1.3M mentions | 72% positive | #TelecomPLI #MakeInIndia |
| 850K views | 78% constructive | #DigitalBharat #PLIReview | |
| YouTube | 620K views | 70% mixed | #TelecomManufacturing #PLIUpdate |
| 430K interactions | 74% supportive | #IndiaTelecom #PLI2025 |
As the telecom sector gears up for 5G expansion and future 6G trials, the PLI scheme remains a cornerstone of India’s manufacturing ambitions. With DoT’s backing and policy recalibration, stakeholders hope the next review cycle will see broader compliance and deeper ecosystem impact.
Disclaimer: This article is based on publicly available government statements, industry reports, and expert commentary. It does not reflect any political endorsement or investment advice. All quotes are attributed to public figures and institutions as per coverage. The content is intended for editorial and informational purposes only.
