Ashwini Vaishnaw Backs Rs 25,000 Crore in Mobile PLI Scheme, 12 Lakh Jobs Created

India's mobile phone manufacturing sector has surpassed expectations. Raking in a significant Rs 25,000 crore in direct tax revenues. Exceeding the government's own incentives payouts of Rs 19,000 crore under the production-linked incentive scheme. Union Minister for Electronics and Information Technology Ashwini Vaishnaw revealed the figures on Wednesday.

Countering criticism that India's mobile manufacturing model is underperforming.

India's electronics sector, which spans across 25 million jobs, is dominated by mobile manufacturing, accounting for 12 million employment opportunities. According to Vaishnaw, the government aims to bolster the sector's manufacturing capabilities through a new initiative focused on boosting domestic component sourcing and repositioning India in global supply chains.

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The sector's employment contribution is substantial, with electronics manufacturing employing 25 lakh people, and mobile manufacturing alone employing 12 lakh.

The government's efforts to support the sector have been successful. With the production-linked incentive scheme contributing to Rs 3,000 crore in Goods and Services Tax (GST) collections. The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) in July, allocating Rs 62,500 crore to the programme.

This will operate from FY 2026-27 to FY 2030-31.

India is set to ramp up its mobile phone manufacturing capacity as part of a new initiative aimed at boosting domestic production and global competitiveness. The government has announced a range of incentives. From 2.25% to 5% discounts on eligible mobile phone sales, with an additional 1.5% bonus for companies sourcing key components locally.

The scheme also provides support for Indian mobile brands, with rewards tied to design and R&D efforts.

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The government's investment in the sector is expected to yield significant benefits. With mobile phone production over the scheme's tenure projected to total approximately Rs 39 lakh crore. And exports also expected to rise significantly. The sector's growth is a shows the government's efforts to promote made-in-India products and boost the country's manufacturing capabilities.

Rs 25,000 crore in direct tax collections generated by India's mobile phone manufacturing sector.

Electronics manufacturing employs 25 lakh people; mobile manufacturing alone employs 12 lakh.