Mobile PLI scheme generates ₹25,000 crore in direct taxes: Ashwini Vaishnaw

The government’s Production Linked Incentive (PLI) scheme for mobile phone manufacturing has generated ₹25,000 crore in direct tax collections against an incentive payout of ₹19,000 crore, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Wednesday.

In a post on X, Vaishnaw said the scheme had also contributed ₹3,000 crore in Goods and Services Tax (GST) collections. Highlighting the sector’s employment potential, he said electronics manufacturing employs 25 lakh people, with mobile manufacturing alone accounting for 12 lakh jobs.

His remarks came in response to a news report questioning the effectiveness of India’s mobile manufacturing model and the role of government incentives in the sector.

The figures come as the government seeks to expand domestic mobile phone production, increase local sourcing of components and strengthen India’s position in global supply chains.

In July, the Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore. The scheme will run from the financial year 2026–27 to 2030–31 and aims to scale up production, deepen domestic value addition, strengthen supply chains and improve global competitiveness.

Under the scheme, incentives ranging from 2.25 per cent to 5 per cent will be provided on eligible mobile phone sales, with an additional incentive of up to 1.5 per cent linked to domestic sourcing of key components and sub-assemblies. The scheme also provides support for Indian mobile brands, including incentives linked to design and research and development.

According to the Ministry of Electronics and Information Technology, cumulative mobile phone production during the scheme’s tenure is expected to reach approximately ₹39 lakh crore, alongside a significant increase in exports. The scheme is also expected to generate around 60,000 direct jobs.

The new scheme follows the conclusion of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing on March 31, 2026. The government aims to sustain manufacturing growth while encouraging deeper domestic sourcing, greater value addition and the development of Indian-owned mobile brands.

-ANI