Summary:
The Economic Survey 2025–26 highlights the growing impact of the Production-Linked Incentive (PLI) scheme on India’s telecom manufacturing sector. Between FY21 and FY25, telecom exports recorded a 1.5% average annual growth rate (AAGR), while imports declined by 18.5%, indicating early success in import substitution and improved domestic competitiveness. The Survey notes a sharp acceleration in FY25, with telecom equipment exports rising over 50% year-on-year, supported by increased investments, capacity expansion, and stronger integration with global value chains. These trends position telecom as a key contributor to India’s broader manufacturing and export-led growth strategy.
The Economic Survey 2025–26 underlines the telecom sector as a key beneficiary of India’s manufacturing-led policy framework, particularly the Production-Linked Incentive (PLI) scheme. Historically dependent on imports for network equipment and components, the sector is now showing measurable progress toward self-reliance and export orientation.
According to the Survey, telecom exports grew at an average annual rate of 1.5% between FY21 and FY25. While moderate over the full period, the growth trajectory strengthened significantly in the most recent year. FY25 witnessed a sharp surge in telecom equipment exports, reflecting the maturing impact of PLI incentives, scale expansion by domestic manufacturers, and increased participation of global players producing in India.
At the same time, telecom imports declined by 18.5% over FY21–FY25, signalling a reduction in dependence on foreign suppliers. The Survey attributes this decline to rising domestic production capacity, localisation of components, and policy support aimed at strengthening India’s electronics and telecom manufacturing ecosystem. Import compression is seen as a critical indicator of improved supply-side resilience and cost competitiveness.
The telecom PLI scheme has encouraged investments across network equipment, wireless products, and core telecom infrastructure. Manufacturers have expanded production lines, upgraded technology, and integrated India into global supply chains. As a result, India is increasingly exporting telecom equipment to international markets, including emerging economies and advanced markets.
Beyond trade metrics, the Survey highlights broader sectoral benefits such as job creation, technology transfer, and improved manufacturing capabilities. The telecom sector also plays a foundational role in enabling digital connectivity, supporting rapid growth in internet subscriptions, data consumption, and digital public infrastructure.
In the wider macroeconomic context, the Economic Survey 2025–26 projects strong GDP growth for FY26, supported by robust services exports, improving manufacturing performance, and stable domestic demand. Electronics and telecom manufacturing are identified as strategic sectors driving export diversification and industrial upgrading.
Overall, the Survey concludes that PLI-led growth in telecom manufacturing is beginning to deliver structural gains, reflected in rising exports, falling imports, and stronger domestic capabilities. While sustained progress will depend on continued investment, technology development, and global demand conditions, the telecom sector’s performance marks a significant step toward India’s goal of becoming a competitive global manufacturing and export hub.
