NewKerala.com

India Plans New Mobile Manufacturing Incentives as PLI Scheme Concludes

India is formulating a new incentive scheme to support domestic mobile phone manufacturing as the current Production-Linked Incentive (PLI) programme concludes. The policy aims to sustain the sector's growth, with a target to increase electronics manufacturing output to $500 billion by the fiscal year 2030. The move is expected to benefit global giants like Apple and Samsung, which have significantly expanded production in India. Officials are considering linking the new incentives to export performance to further boost the country's position in global supply chains.

Key Points: India's New Mobile Manufacturing Incentives Post-PLI Scheme

  • New incentives after PLI scheme ends
  • Aims for $500B electronics output by 2030
  • Focus on export-linked performance
  • Benefits Apple and Samsung manufacturing
  • Mobile exports surged 127-fold in a decade
2 min read

India plans fresh incentives to boost mobile phone manufacturing after PLI scheme ends

India plans fresh incentives to boost smartphone manufacturing and exports, aiming for $500B electronics output by 2030, benefiting Apple and Samsung.

"Boosting smartphone manufacturing has become a key part of the economic strategy of Prime Minister Narendra Modi - Report"

New Delhi, March 13

India is planning a new set of incentives to support domestic mobile phone manufacturing after its flagship production-linked incentive scheme for the sector ends this month.

The move is expected to benefit global smartphone makers such as Apple and Samsung, which have significantly expanded their production in the country in recent years, according to multiple reports.

The government's decision to continue supporting the industry comes at a time when India may lose some of its tariff advantage over China in exporting goods to the United States.

The change follows the invalidation of a fentanyl-related levy imposed by President Donald Trump on Beijing by a US court.

Boosting smartphone manufacturing has become a key part of the economic strategy of Prime Minister Narendra Modi, who has been pushing to expand domestic manufacturing and strengthen India's position in global supply chains.

The government aims to increase the country's electronics manufacturing output to $500 billion by the fiscal year 2030.

Government data shows that India produced nearly $60 billion worth of mobile phones in the 2024-25 fiscal year, marking a massive 28-fold increase over the past decade.

During the same period, mobile phone exports surged to about $21.7 billion, a 127-fold jump, making smartphones the country's top exported product in 2025.

Officials are now considering linking the new incentives to export performance in order to further promote globally competitive manufacturing.

According to the report, the new scheme could cover investments starting from April this year.

Previously, major manufacturers such as Apple and Samsung relied on India's production-linked incentive scheme, a programme worth nearly $21 billion designed to help the country compete with China's manufacturing dominance.

The scheme played a crucial role in encouraging companies to increase local production.

The programme also enabled Apple to begin manufacturing its latest and most expensive iPhone models in India after initially producing only lower-cost versions in the country.

High tariffs imposed on Chinese goods during Trump's presidency had also encouraged some companies to shift part of their production to India.

- IANS

Share this article:

Reader Comments

S
Sarah B
As someone who works in tech, I've seen the positive impact firsthand. More local manufacturing means better supply chain resilience and potentially lower prices for consumers in the long run. A smart strategic move.
P
Priya S
The export numbers are incredible! From almost nothing to $21.7 billion? That's a massive achievement. Hope the new incentives focus on developing our own component ecosystem too, not just final assembly.
R
Rohit P
Good step, but the government must ensure these incentives truly benefit Indian companies and MSMEs, not just global giants like Apple and Samsung. We need to build our own champions.
M
Michael C
Linking incentives to export performance is the right approach. It pushes companies to be globally competitive, not just rely on subsidies for domestic sales. The $500 billion target is ambitious but achievable with consistent policy.
K
Kavya N
My brother got a job at the new Foxconn plant. It's changed our family's life. More such initiatives please! But also need to focus on skill development so our youth can get higher-value engineering roles, not just assembly line jobs.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50