India doubles down on mobile manufacturing; Cabinet approves Rs 62,500 crore mobile PLI 2.0
India has become the world's second-largest producer of mobile phones, behind China. With the PLI scheme 2.0, India plans to expand smartphone production and move beyond assembly.
- Jul 15, 2026,
- Updated Jul 15, 2026 4:18 PM IST
The Union Cabinet has approved a new Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS). This replaced the earlier PLI scheme for electronics manufacturing, which officially ended on March 31, 2026.
The scheme will help India to move beyond assembling and manufacturing smartphones and build its own smartphone brands and design phones within India. And develop homegrown technology and intellectual property (IP). The programme will be in effect for five financial years, beginning in 2026-27 and ending in 2030-31.
Must read: Global smartphone market hits 13-year Q2 low amid RAM and memory supply crunch
In calendar year 2025, smartphones became India's biggest export product by value, surpassing other major exports. Reportedly, India exported smartphones worth Rs 2.62 lakh crore in 2025.Apple accounted for the largest share of these exports, mainly through iPhone manufacturing by suppliers such as Foxconn, Tata Electronics, and Pegatron in India.
Now, India has become the world's second-largest producer of mobile phones, behind China. In FY 24-25, mobile production in India doubled from Rs 2.14 lakh crore in FY 2019-20 to Rs 5.5 lakh crore. In addition, smartphone exports grew dramatically, from Rs 27,000 crore in FY 2019-20 to Rs 2 lakh crore in FY 2024-25, showing a roughly eight-fold increase.
Must read: India's largest nuclear plant hit by data leak; Blueprints allegedly leaked on dark web
What government expects to achieve
With the new scheme, smartphone production in India is expected to reach approximately Rs 39,00,000 crore, with a significant increase in exports. It is also expected to generate around 60,000 direct jobs, particularly in smaller towns and rural areas, with several existing plants employing more than 5,000 people at a single location.
The broader ambition is to move India from being the world's assembly floor to being a genuine innovation hub, where phones are designed, patented, and exported under Indian brand names.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
The Union Cabinet has approved a new Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS). This replaced the earlier PLI scheme for electronics manufacturing, which officially ended on March 31, 2026.
The scheme will help India to move beyond assembling and manufacturing smartphones and build its own smartphone brands and design phones within India. And develop homegrown technology and intellectual property (IP). The programme will be in effect for five financial years, beginning in 2026-27 and ending in 2030-31.
Must read: Global smartphone market hits 13-year Q2 low amid RAM and memory supply crunch
In calendar year 2025, smartphones became India's biggest export product by value, surpassing other major exports. Reportedly, India exported smartphones worth Rs 2.62 lakh crore in 2025.Apple accounted for the largest share of these exports, mainly through iPhone manufacturing by suppliers such as Foxconn, Tata Electronics, and Pegatron in India.
Now, India has become the world's second-largest producer of mobile phones, behind China. In FY 24-25, mobile production in India doubled from Rs 2.14 lakh crore in FY 2019-20 to Rs 5.5 lakh crore. In addition, smartphone exports grew dramatically, from Rs 27,000 crore in FY 2019-20 to Rs 2 lakh crore in FY 2024-25, showing a roughly eight-fold increase.
Must read: India's largest nuclear plant hit by data leak; Blueprints allegedly leaked on dark web
What government expects to achieve
With the new scheme, smartphone production in India is expected to reach approximately Rs 39,00,000 crore, with a significant increase in exports. It is also expected to generate around 60,000 direct jobs, particularly in smaller towns and rural areas, with several existing plants employing more than 5,000 people at a single location.
The broader ambition is to move India from being the world's assembly floor to being a genuine innovation hub, where phones are designed, patented, and exported under Indian brand names.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine