Telecom PLI fails to increase local addition in 4G, 5G networking gear

The production-linked incentive (PLI) scheme for the telecom sector has failed to push local value addition, with top networking products for 4G and 5G services, which account for 80% of the subsidies claimed so far, having just 5% average domestic content, people aware of the details told ET.

This is in sharp contrast to the smartphone PLI scheme, where the local value addition is in the range of 19-20%, despite starting around the same time as the scheme for telecom and networking products that was launched in April 2021.