India's Telecom Imports From China Rise to $6.37 Billion in 2023-24: Pemmasani

Why It Matters

Higher Chinese imports expose India to supply‑chain and security risks, while new incentives aim to accelerate home‑grown telecom manufacturing and reduce foreign reliance.

Key Takeaways

• Telecom imports from China hit $6.37 bn in 2023‑24
• Overall telecom equipment imports rose to $17.01 bn
• Government introduced procurement order favoring domestic value‑addition
• PLI scheme aims to boost local telecom manufacturing
• Testing fee waivers ease compliance for MSMEs

Pulse Analysis

India’s telecom sector has become increasingly intertwined with Chinese supply chains, as imports of Chinese‑origin equipment surged to $6.37 billion in FY2023‑24. This upward trajectory mirrors the broader growth of telecom‑equipment spending, which reached $17.01 billion across all sources. While the influx of affordable components supports rapid network rollout, it also raises strategic concerns about dependency on a single foreign supplier, especially amid geopolitical tensions and evolving security standards.

In response, New Delhi is reshaping its policy toolkit to nurture domestic capability. A new public procurement order now mandates a minimum domestic value‑addition for government contracts, effectively giving Indian manufacturers a pricing edge. Complementing this, the Production Linked Incentive (PLI) scheme for telecom and networking products offers cash rewards tied to output volumes, encouraging scale‑up of local factories. Additionally, the Ministry has slashed testing and certification costs for MSMEs by waiving evaluation fees and extending certificate validity, lowering barriers for smaller players to enter the market.

Looking ahead, the combined effect of these measures could shift the import composition, gradually reducing China’s share in India’s telecom ecosystem. However, achieving self‑sufficiency will require sustained investment in R&D, skilled labor, and supply‑chain resilience. If successful, India could emerge as a regional hub for telecom hardware, attracting foreign capital and strengthening its strategic autonomy, while also offering U.S. firms a more diversified partner in the Indo‑Pacific.