This success of the telecom sector is attributed primarily to the Production Linked Incentive (PLI) Scheme for Telecom and Networking Products. 

About the scheme 

• Nodal Ministry: Ministry of Communications
• Type: Central Sector Scheme
• Objectives: Enhancing domestic manufacturing capabilities and making India a global hub for telecom equipment production. 
• Eligibility: Global companies; Domestic companies or MSMEs fulfilling specified Global Manufacturing Revenue criteria.
• Benefits: Financial incentives to manufacturers based on their incremental sales from base year for products manufactured in India.
• Financial incentive
  • Base Year: FY 2019-20 
  • Rate of incentive: 4-7% for MSMEs and 4-6 % for others.
    • Additional 1% incentive under Design-led PLI for products that are designed and manufactured in India.
• Products eligible for financial incentive: Core Transmission Equipment; 4G/5G, Next Generation Radio Access Network (RAN) and Wireless Equipment; Switches, Routers, etc.
• Tenure:
  • For making investments: April 2021 up to FY 2024-2025
  • For availing financial Incentives:  FY 2021-22 to FY 2025-26
• Project Management Agency: Small Industries Development Bank of India (SIDBI)