India Mobile PLI Scheme: ₹25,000 Crore in Direct Taxes, 12 Lakh Mobile Manufacturing Jobs

India’s mobile manufacturing PLI scheme has generated ₹25,000 crore in direct taxes, exceeding incentive payouts, while supporting employment, domestic production and electronics manufacturing growth.

Mobile PLI Scheme Generates ₹25,000 Crore in Direct Taxes, Says Ashwini Vaishnaw

Mobile Manufacturing PLI Scheme Delivers Tax Revenue

India’s Production Linked Incentive (PLI) scheme for mobile phone manufacturing has generated ₹25,000 crore in direct tax revenue against incentive payments of ₹19,000 crore, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Wednesday.

In a post on X, the minister highlighted the scheme’s financial contribution and its role in strengthening India’s electronics manufacturing industry. He also reported that the initiative had contributed ₹3,000 crore in Goods and Services Tax (GST) collections.

The figures underline the government’s efforts to promote domestic manufacturing through financial incentives while generating economic activity and tax revenue. The scheme is designed to encourage companies to expand production in India and strengthen the country’s position in the global electronics market.

Vaishnaw’s remarks came in response to a news report questioning the effectiveness of India’s mobile manufacturing strategy and the role of government support in developing the sector.

Electronics Manufacturing Creates 25 Lakh Jobs

The minister also highlighted employment growth in the electronics manufacturing industry. According to the figures he shared, the sector employs approximately 25 lakh people, with mobile phone manufacturing accounting for around 12 lakh jobs.

The expansion of manufacturing facilities has created employment opportunities across production, assembly, quality control, logistics and related activities. Growth in the industry can also support businesses involved in component supply, packaging, transportation and other services.

The government aims to increase domestic manufacturing capacity while encouraging companies to develop stronger local supply chains. Greater domestic sourcing could help expand employment opportunities and strengthen India's role in international electronics production networks.

Government Approves ₹62,500 Crore Mobile Phone Manufacturing Scheme

In July, the Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary allocation of ₹62,500 crore.

The programme will operate from financial year 2026–27 through 2030–31. Its objectives include expanding mobile phone production, increasing domestic value addition, strengthening component supply chains and improving the international competitiveness of Indian manufacturing.

The scheme follows the conclusion of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing on March 31, 2026.

With the earlier programme completed, the new initiative is intended to sustain the sector’s momentum and encourage manufacturers to expand operations while increasing the share of components and sub-assemblies sourced within India.

Incentives Linked to Sales and Domestic Sourcing

Under the new Mobile Phone Manufacturing Scheme, eligible mobile phone sales will receive incentives ranging from 2.25% to 5%, according to the supplied information.

An additional incentive of up to 1.5% will be available for qualifying domestic sourcing of key components and sub-assemblies. This provision is intended to encourage manufacturers to purchase more inputs from Indian suppliers rather than depending heavily on imported components.

The programme also includes support for Indian mobile phone brands, with incentives linked to product design and research and development.

These measures aim to expand manufacturing beyond final assembly. Developing local component production, design capabilities and research activities could help Indian companies capture a greater share of the value generated across the mobile phone supply chain.

Mobile Production Expected to Reach ₹39 Lakh Crore

According to the Ministry of Electronics and Information Technology (MeitY), cumulative mobile phone production during the scheme’s tenure is expected to reach approximately ₹39 lakh crore.

The government also anticipates a significant increase in exports as manufacturers expand production capacity and strengthen their participation in international markets.

Higher production and exports could help India attract additional manufacturing investments, improve supply-chain resilience and increase its competitiveness as a mobile phone production hub.

However, achieving these targets will depend on factors such as global demand, manufacturing capacity, the availability of components, investment decisions and the pace at which domestic suppliers expand their operations.

New Scheme Targets 60,000 Direct Jobs

The Mobile Phone Manufacturing Scheme is expected to create approximately 60,000 direct jobs, according to the information provided by the ministry.

Employment growth is likely to depend on the expansion of manufacturing facilities, the development of component suppliers and the adoption of new production technologies.

The scheme’s focus on domestic sourcing and Indian-owned brands could also create opportunities for businesses involved in design, product development, testing and engineering.

Alongside direct employment, a larger manufacturing ecosystem may generate additional work in logistics, distribution, maintenance and other supporting services. The extent of these indirect benefits will depend on the scale of industrial expansion and the participation of domestic businesses.

India Seeks Greater Domestic Value Addition

The government’s latest initiative reflects a broader effort to strengthen India’s electronics manufacturing ecosystem and reduce dependence on imported components.

While incentive programmes have supported the expansion of mobile phone production, increasing domestic value addition remains an important objective. This involves developing local component manufacturing, improving technical capabilities and encouraging more research and design activities within India.

Support for Indian mobile brands is another element of the strategy, as domestic companies seek to build products and capabilities that can compete in international markets.

The reported tax collections, employment figures and production targets highlight the economic significance of the mobile manufacturing sector. The next phase will focus on sustaining growth, attracting investment and building a deeper domestic supply chain.