The Union Cabinet has approved a ₹62,500 crore mobile phone manufacturing scheme, marking a major push to strengthen India’s electronics ecosystem. Building on the success of earlier Production Linked Incentive (PLI) initiatives, the new program aims to boost domestic value addition, scale up exports, and cement India’s position as a global smartphone manufacturing hub.
The Government of India has taken a significant step toward enhancing its electronics manufacturing capabilities by approving a ₹62,500 crore incentive scheme for mobile phone production. This initiative succeeds the earlier Mobile Phone PLI 1.0 scheme, which had an allocation of ₹40,000 crore and played a pivotal role in transforming India into the world’s second-largest mobile phone manufacturer.
The new scheme is designed to build on this momentum by encouraging deeper domestic value addition and strengthening local supply chains. It reflects the government’s long-term strategy to make India a key player in global electronics manufacturing while reducing dependency on imports.
Over the past decade, India’s mobile manufacturing sector has undergone a remarkable transformation. Union Minister for Electronics and IT, Ashwini Vaishnaw, highlighted that smartphones have now become India’s single largest export item—an extraordinary shift considering they were not even among the top 100 export categories ten years ago.
This growth has been driven largely by the PLI scheme, which attracted major global smartphone manufacturers and suppliers to set up or expand operations in India. As a result, the country has seen a surge in both production and exports, positioning itself as a viable alternative to traditional manufacturing hubs.
One of the most notable achievements of India’s mobile manufacturing push is the near-total localization of production. According to government data, approximately 99.2% of all mobile phones used in India are now manufactured domestically.
This includes devices across all price segments and brands, reflecting the scale and maturity of the ecosystem. From entry-level phones to premium smartphones, India has developed the capability to produce a wide range of devices, supported by an expanding network of component manufacturers and assembly units.
India currently manufactures around 125 crore mobile phones annually, underscoring its growing importance in the global electronics supply chain. This scale of production not only meets domestic demand but also supports large-scale exports to international markets.
The expansion of manufacturing capacity has created thousands of jobs, boosted ancillary industries, and contributed significantly to economic growth. It has also enhanced India’s credibility as a reliable manufacturing destination for global companies.
While the earlier PLI scheme focused primarily on assembling finished devices, the new ₹62,500 crore program aims to deepen value addition within the country. This includes incentivizing the production of key components such as semiconductors, displays, batteries, and camera modules.
By promoting local manufacturing of components, the government aims to reduce reliance on imports and increase the share of domestically sourced inputs in finished products. This move is expected to improve cost competitiveness and strengthen India’s position in global value chains.
The new scheme comes at a time when global companies are actively diversifying their supply chains beyond China. India is emerging as a preferred destination due to its large market, skilled workforce, and supportive policy environment.
With enhanced incentives and a focus on high-value manufacturing, the government aims to significantly increase mobile phone exports in the coming years. The scheme is expected to attract fresh investments from both domestic and international players, further boosting India’s export potential.
In addition to attracting global manufacturers, the government is also focusing on nurturing indigenous brands. Minister Vaishnaw expressed confidence that India will soon develop globally competitive smartphone brands capable of competing in international markets.
This shift towards innovation and brand-building represents the next stage of India’s electronics manufacturing journey. By combining large-scale production with design and innovation capabilities, India aims to move up the value chain.
The growth of mobile phone manufacturing has far-reaching implications beyond consumer electronics. A strong electronics ecosystem creates capabilities that can be leveraged in sectors such as aerospace, defense, automotive, and telecommunications.
According to policymakers, countries that excel in mobile manufacturing often develop expertise in advanced technologies, enabling growth in other high-tech industries. The new scheme is therefore expected to contribute to broader industrial development and technological advancement.
The ₹62,500 crore scheme aligns with the government’s broader vision of making India a global manufacturing hub. It complements other initiatives such as semiconductor missions, electronics clusters, and infrastructure development programs.
By creating a robust ecosystem that supports innovation, production, and exports, India aims to attract long-term investments and establish itself as a key player in the global electronics industry.
With the launch of the new mobile manufacturing scheme, India is poised to enter the next phase of growth in the electronics sector. The focus on value addition, component manufacturing, and exports is expected to drive sustained expansion.
As global supply chains continue to evolve, India’s proactive policy measures and growing manufacturing capabilities position it well to capture a larger share of the market. The success of this scheme could further accelerate India’s journey toward becoming a global leader in electronics manufacturing.