Key Points

This scheme, launched on April 1, 2021, aims to boost domestic manufacturing and self-reliance in the telecom sector. It is scheduled to conclude at the end of the current financial year.

Out of 42 companies shortlisted under the scheme, only 21 manufacturers have successfully received the incentives so far.

Two companies -- Coral Telecom Limited and Alphion India Pvt Limited -- had their claims rejected for failing to meet the eligibility criteria in their respective financial years.

The government had earmarked Rs 4,115 crore for the scheme with the goal of generating an estimated Rs 2.45 lakh crore in additional sales and creating over 44,000 new jobs during its run.

As of January 2025, beneficiary companies have made investments worth Rs 4,081 crore, resulting in total sales of Rs 78,672 crore.

Of this, export sales account for Rs 14,963 crore. The scheme has also helped create 26,351 jobs so far.

However, not all feedback has been positive. A beneficiary company, speaking on condition of anonymity, alleged that some firms are simply white-labelling imported products rather than manufacturing locally.

This practice has reportedly impacted margins and goes against the intent of the scheme. Industry voices have called for stricter monitoring to ensure only genuine domestic manufacturing efforts are rewarded.

Jabil Circuit emerged as the top beneficiary, receiving Rs 235.87 crore in incentives over two financial years.

Other major recipients include Flextronics (Rs 165.12 crore), Nokia (Rs 157.32 crore), NeoLync Telecommunications backed by Reliance (Rs 142.06 crore), Foxconn’s Rising Stars (Rs 80.33 crore), and Syrma SGS (Rs 53.23 crore).

Several other companies received smaller incentives, including VVDN Technologies (Rs 48.37 crore), Sanmina-SCI (Rs 44.35 crore), Dixon India (Rs 34.78 crore), and GX India (Rs 20.91 crore).

Industry experts believe that stronger alignment between telecom operators and the government’s vision is needed.

They stress the importance of encouraging the procurement of telecom products with higher local value addition to truly support the goals of self-reliance and job creation.

- IANS