Centre considering extension or launch of a new PLI scheme for mobile manufacturing as the current ₹40,995-crore plan expires in March
MeitY Secretary S. Krishnan says incentives still needed to address cost disadvantages and protect gains made under the scheme
Between FY22–FY25, ₹8,700 crore was disbursed, with five firms accounting for nearly 98% of total incentives
The Centre is considering extending or launching a fresh production-linked incentive (PLI) scheme for mobile phone manufacturing in India, as the existing ₹40,995 crore scheme is set to expire in March, Mint reported citing government sources.
In an interview, S. Krishnan, Secretary at the Ministry of Electronics and Information Technology (MeitY), said a final decision on the scheme has not yet been taken, and the quantum of incentives is also yet to be finalised.
1 January 2026
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“There’s an analysis which shows that some degree of disability continues in the mobile phone electronics industry. While the situation has improved significantly, there are still areas that require improvement and support,” Mint quoted Krishnan as saying. He added that the Electronics Component Manufacturing Scheme (ECMS) would take at least two years to meaningfully lower costs.
“The other reason is that mobile manufacturing is one PLI that has been very successful, so ending it too early may jeopardise the gains India has made,” Krishnan said.
The current mobile phone PLI scheme was launched on April 1, 2020, offering manufacturers cash incentives of 4–6% on incremental sales of locally manufactured devices. With an outlay of ₹40,995 crore over six years, it accounted for around 20% of the ₹1.97 trillion allocated across 14 PLI schemes.
While the government has disclosed the investments attracted and total production achieved under the scheme, it has not released data on the net incentive payout, the report said. Krishnan noted that the industry has requested either an extension of the existing scheme or the introduction of a similar incentive framework to sustain mobile manufacturing.
According to The Indian Express, the Centre disbursed ₹8,700 crore in incentives to mobile manufacturers between FY22 and FY25. Nearly 98% of these incentives went to five firms—Foxconn, Tata Electronics, Pegatron, Samsung, and Dixon Technologies’ subsidiary Padget Electronics.
The scheme has significantly boosted India’s electronics manufacturing services (EMS) sector, which reported revenues of over ₹1.25 trillion in FY24. Earlier in July, the Centre said PLI schemes had increased the number of mobile manufacturing units from just two in FY15 to around 300 as of March 31, 2025.
In FY25, India manufactured electronics goods worth ₹11.3 trillion and exported ₹3.27 trillion.
