India to Introduce New Incentives for Mobile Phone Manufacturing

New Initiatives for Mobile Manufacturing in India

New Delhi, March 13: India is set to unveil a fresh array of incentives aimed at bolstering domestic mobile phone production as the current production-linked incentive (PLI) scheme for the sector concludes this month.

This initiative is anticipated to benefit major global smartphone manufacturers like Apple and Samsung, who have notably ramped up their production capabilities in India over recent years, as reported by various sources.

The government's choice to persist in supporting the industry comes at a crucial juncture when India risks losing some of its tariff advantages over China for exporting products to the United States.

This shift follows a US court's decision to invalidate a fentanyl-related tariff that had been imposed on China by former President Donald Trump.

Enhancing smartphone manufacturing has become a pivotal element of Prime Minister Narendra Modi's economic strategy, focusing on boosting domestic production and reinforcing India's role in global supply chains.

The government has set an ambitious target to elevate the electronics manufacturing output to $500 billion by the fiscal year 2030.

Data from the government indicates that India produced nearly $60 billion worth of mobile phones in the fiscal year 2024–25, reflecting a staggering 28-fold increase over the last decade.

During this same timeframe, mobile phone exports soared to approximately $21.7 billion, marking a 127-fold increase, making smartphones the leading exported product from India in 2025.

Officials are now contemplating linking the new incentives to export performance to further enhance globally competitive manufacturing.

Reports suggest that the new scheme could commence covering investments starting from April this year.

Previously, significant manufacturers like Apple and Samsung benefited from India's PLI scheme, which was valued at nearly $21 billion and aimed to help the nation compete with China's manufacturing supremacy.

This program was instrumental in motivating companies to boost local production.

Additionally, it allowed Apple to start manufacturing its latest and most premium iPhone models in India, after initially producing only lower-cost variants in the country.

High tariffs on Chinese goods during Trump's administration also prompted several companies to relocate parts of their production to India.