Government to Launch ₹62,500 Crore Scheme to Boost Mobile Phone Manufacturing
The Union Cabinet has approved a new scheme worth over ₹62,000 crore to boost smartphone manufacturing in the country. A Production-Linked Incentive (PLI) scheme for large-scale electronics manufacturing had previously concluded in March of this year. Over the past few years, the PLI scheme has driven rapid growth in smartphone manufacturing within the country. Companies benefiting from such schemes include Apple—maker of the globally popular iPhone—and South Korea’s Samsung.
The Ministry of Electronics and Information Technology announced on Wednesday that the Union Cabinet has approved a mobile phone manufacturing scheme with an outlay of ₹62,500 crore. The scheme aims to enhance mobile phone manufacturing and value addition within the country while strengthening the supply chain. It will assist domestic brands in acquiring new technologies and scaling up their manufacturing capabilities.
The new manufacturing scheme has a tenure of five years, applicable from the 2026-27 financial year through the 2030-31 financial year. Under this scheme, mobile phone manufacturers will receive incentives ranging from 2.25% to 5% based on domestic sales. Additionally, extra incentives will be provided for components sourced locally. Indian smartphone brands will receive an additional incentive of up to 3% on sales for conducting research and development (R&D) and design activities within the country.
The mobile phone manufacturing scheme is expected to generate approximately 60,000 additional jobs. Over the scheme’s duration, smartphone manufacturing in India could rise to reach ₹39 lakh crore. Exports of smartphones from the country are also likely to witness a significant surge. In India, iPhones are assembled at the factories of Apple’s contract manufacturers, Foxconn and Tata Group’s Tata Electronics. During the first nine months of the last fiscal year, the company exported iPhone models worth approximately $16 billion. The US is the largest market for smartphone exports from the country. Over the past few years, Samsung has also ramped up smartphone manufacturing and exports in India.
