India has announced a ₹62,500 crore Mobile Phone Manufacturing Scheme to strengthen domestic production and support Indian brands. The scheme will run from FY27 to FY31 and provide incentives ranging from 2.25% to 5% for manufacturers. It also encourages local sourcing of components and sub-assemblies to reduce import dependence.
The government introduced this scheme after the success of the first mobile PLI programme, which exceeded expectations. Investments touched ₹20,500 crore against a target of ₹7,000 crore. Production reached ₹11.61 lakh crore compared to the target of ₹8.12 lakh crore. Exports stood at ₹6.43 lakh crore against a target of ₹4.87 lakh crore. Domestic value addition rose from 15% to 23%, while the ecosystem attracted $14 billion investment.
This new scheme is expected to strengthen India’s position as a global mobile manufacturing hub. It will provide a major push to domestic brands, encourage job creation, and promote innovation. By focusing on local sourcing, the plan aims to build a stronger supply chain and reduce reliance on imports. The initiative highlights India’s ambition to expand its electronics sector and boost exports further.