Four Indian firms eye Centre's new ₹62,500 crore mobile manufacturing scheme

Four domestic players have lined up to participate in the Centre's revamped mobile manufacturing initiative, which replaces the existing Production-Linked Incentive (PLI) scheme with a substantially larger corpus of ₹62,500 crore. The new programme is designed to strengthen India's position in global smartphone manufacturing while accelerating the growth of domestic brands in the competitive handset market.

The scheme introduces a two-track incentive structure, offering separate benefits for established contract manufacturers alongside dedicated support mechanisms for Indian mobile brands seeking to scale production and exports. Officials said the expanded budget reflects the government's commitment to making India a global electronics manufacturing hub, with provisions to support both foreign-owned manufacturing operations and homegrown enterprises.

The previous PLI scheme, launched in 2020, had helped attract major international manufacturers to set up or expand operations in India. The new framework aims to build on that momentum while addressing gaps in localisation and brand development. Participants in the scheme will be required to meet enhanced domestic value addition thresholds and export targets to unlock the full range of incentive benefits.

The move comes as India seeks to reduce its dependence on Chinese imports and position itself as an alternative manufacturing destination amid shifting global supply chain dynamics. Industry analysts say the enhanced incentives could prompt additional smartphone makers to establish manufacturing capacity in India, potentially creating thousands of jobs across electronics manufacturing clusters.