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Cabinet clears Rs 62,500 crore mobile manufacturing scheme
New scheme aims to deepen value addition as 99.2 per cent of phones sold are made in India
MUMBAI: India’s smartphone story is dialling into its next chapter, and this time the government is turning up the volume on manufacturing. The Union Cabinet has approved a Rs 62,500 crore mobile phone manufacturing scheme, setting the stage for the next phase of India’s electronics ambitions after the success of the Production Linked Incentive (PLI) programme that transformed the country into the world’s second-largest mobile phone manufacturer.
The new scheme replaces the Mobile Phone PLI 1.0, which had an outlay of Rs 40,000 crore, and is aimed at increasing domestic value addition, strengthening component manufacturing and boosting exports as India positions itself as a global alternative in electronics production.
Announcing the decision after the Cabinet meeting, Union Minister for Electronics and IT Ashwini Vaishnaw said India’s mobile manufacturing landscape has undergone a remarkable transformation over the past decade.
“In the last 10 years, there has been a massive change in the mobile electronics ecosystem. Smartphones are now the single largest export item. They were not even among the top 100 export items a decade ago,” Vaishnaw said.
Highlighting the scale of domestic production, the minister noted that India has effectively become self-reliant in smartphone manufacturing.
“All the mobile phones being used in India, irrespective of the brand, are manufactured in India. About 99.2 per cent of them are made in India,” he said.
India currently manufactures around 125 crore mobile phones every year, underlining its growing importance in the global electronics supply chain. Vaishnaw added that the country’s manufacturing ambitions extend beyond assembling devices.
“In the coming times, India will also produce its own brand,” he said, expressing confidence that globally competitive Indian smartphone brands will emerge in the years ahead.
The minister also emphasised that building a strong mobile manufacturing ecosystem creates capabilities for other advanced industries.
“Countries that manufacture mobile phones also advance in manufacturing sectors such as aviation, space and other high-technology industries,” he said.
The fresh incentive scheme comes as global manufacturers continue diversifying production beyond China and expanding their India footprint. The previous PLI programme attracted investments from leading smartphone makers and component suppliers, significantly lifting domestic production and exports.
With a Rs 62,500 crore outlay, the government is now betting on the next stage of the journey moving beyond assembly to higher local value addition, expanding the domestic component ecosystem and strengthening India’s competitiveness in global electronics manufacturing.
