Ministry of Communications Plans Second Telecom PLI Scheme with Focus on Local Manufacturing

The Ministry of Communications is working on a second Production-Linked Incentive (PLI) scheme for the telecom sector, with the proposed programme to put greater emphasis on domestic design and development of equipment. 

The government wants manufacturers to undertake more work within India, particularly in product design, rather than limiting their domestic operations to manufacturing.  

News reports citing an official source noted on November 6, 2026, that the proposal was still being prepared and would be circulated among different ministries for consultation before being sent to the Union Cabinet. 

Focus on Design-Led Manufacturing 

Higher local value addition is a central part of the proposed scheme. The telecom ministry is looking at a backward-integrated manufacturing ecosystem in which design and product development are also carried out domestically. 

The first edition of the telecom PLI scheme had included a separate provision for design-led manufacturing. Companies meeting the criteria could apply for an additional incentive of 1%.  

Of the 42 companies approved under the programme, 17 applied for this benefit. 

First Scheme Closed in March 2026 

The earlier scheme was launched with a financial outlay of ₹12,195 crore and covered telecom and networking products. It closed in March 2026 after attracting investments of ₹6,073 crore, against the original target of ₹4,115 crore. 

A total of 42 companies received approvals, including 28 micro, small and medium enterprises (MSMEs). The investment recorded under the programme exceeded the target by ₹1,958 crore. 

Proposal Yet to Go for Cabinet Approval 

The second edition is still at the proposal stage. Inter-ministerial consultation is the next step, following which the ministry will submit it for Cabinet approval. 

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Conclusion  

Details of the proposed scheme's financial outlay, eligibility conditions and incentive structure have not been provided in the information currently available. 

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