The government’s mobile manufacturing PLI scheme has generated Rs 25,000 crore in direct taxes, exceeding the Rs 19,000 crore in incentives paid. With 12 lakh jobs created, the focus now shifts to a new Rs 62,500 crore manufacturing scheme starting in 2026 to boost deeper domestic value addition.
The government's Production-Linked Incentive (PLI) scheme for mobile manufacturing has reached a significant milestone, turning a net fiscal gain. According to data shared by the Ministry of Electronics and IT, the program has generated Rs 25,000 crore in direct tax collections, which surpasses the Rs 19,000 crore distributed as incentives to manufacturers. Additionally, the sector has contributed Rs 3,000 crore to the Goods and Services Tax (GST) pool, showcasing the scheme's role in expanding the government’s revenue base.
Beyond fiscal metrics, the program has been a major driver for employment. The mobile manufacturing sector now sustains 12 lakh jobs, and when including the broader electronics vertical, total employment has grown to 25 lakh people. These numbers highlight the scale of industrial expansion achieved since the inception of the current PLI framework.
Looking ahead, the government is preparing for the next phase of its manufacturing strategy. The Union Cabinet has approved a successor initiative, the Mobile Phone Manufacturing Scheme, with a budget of Rs 62,500 crore. This program is scheduled to run from the 2026-27 financial year through 2030-31. The primary goal of this new phase is to shift the industry from simple assembly toward deeper local value addition and to increase the presence of Indian brands in global supply chains.
Under this upcoming framework, the incentive structure will range from 2.25 percent to 5 percent on eligible sales. To encourage companies to invest in local research and sourcing, the government has introduced an incremental incentive of up to 1.5 percent for firms that utilize local sub-assemblies and invest in domestic R&D.
For investors, the transition from assembly to component manufacturing is the most important monitorable. While the current PLI phase helped establish India as a major mobile assembly hub, many manufacturing companies remain heavily dependent on imported components, which exposes them to supply chain risks and currency fluctuations. Moving up the value chain by producing critical components domestically is essential for sustaining margins and long-term competitiveness. Investors may watch for how companies adapt to these new incentives, specifically their ability to set up high-tech manufacturing facilities and effectively reduce reliance on imported parts. The success of this new policy will depend on the industry’s ability to meet these technical goals while remaining cost-competitive in a global market.