Production-Linked Incentives for Mobile Phone Exports
The Indian government is set to introduce production-linked incentives to enhance mobile phone exports by May, with a financial allocation exceeding $5 billion (approximately Rs 46,000 crore).
Background and Scheme Details
- The Scheme for Large Scale Electronics Manufacturing (LSEM) was initiated in 2020, aiming to boost domestic mobile phone manufacturing with a budget of Rs 40,995 crore (approximately $5.7 billion based on the exchange rate at that time).
- LSEM is commonly recognized as the production-linked incentive (PLI) scheme for mobile phones.
Upcoming PLI 2.0
- The PLI 2.0 scheme for mobile phones is underway, focusing on augmenting exports, and is anticipated to be implemented by May with a projected outlay exceeding $5 billion.
- The Ministry of Electronics and IT is consulting with the finance minister regarding the PLI, after which it will be presented to the cabinet for final approval.
Export and Employment Targets
- The goal is to double the export of mobile phones from India.
- In 2025, smartphones worth Rs 2.62 lakh crore (about $28 billion) were exported.
- Total exports under the scheme till February 2026 reached 6.2 lakh crore, exceeding the target of Rs 4.87 lakh crore by 27%.
- The scheme generated 1.85 lakh jobs, which is 8% less than the target of 2 lakh jobs envisaged by the government.
