Business

Ministry of Communications prepares second telecom production-linked incentive scheme emphasizing design-led value addition

Originally reported by ET Industry as: Govt working on telecom PLI with focus on higher local value addition

6 Nov 2026, 8:56 pm IST · Xecute.finance News Desk

The crisp read

The Ministry of Communications is drafting a second edition of the telecom production-linked incentive scheme focusing on design-led local value addition. The first edition secured major investments and numerous company approvals. The proposal requires inter-ministerial consultation and Union Cabinet approval.

Deep dive - the full story

The preceding first edition of the telecom PLI scheme successfully attracted substantial investments and secured approvals from numerous corporate entities, while several firms have already applied for incentives under design-led manufacturing. This framework uses financial incentives to encourage domestic manufacturing and research capabilities, reducing reliance on imported components.

Previously, the initial PLI phase focused broadly on production scale, whereas the upcoming iteration shifts emphasis toward domestic design and deeper local value creation. Eligible manufacturing businesses should review their product roadmaps to qualify for upcoming design-led incentives once finalized. Stakeholders must monitor inter-ministerial discussions and final Union Cabinet notifications for scheme guidelines.

Bottom line: Government manufacturing incentives offer capital support for companies expanding local production capabilities.

Source: economictimes.indiatimes.com

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