Business · India Bureau
India launches ₹62,500 crore mobile manufacturing incentive scheme
The government has unveiled a five-year production-linked incentive programme offering subsidies of up to 5 per cent to boost domestic mobile phone manufacturing and component sourcing across the country.
LSN India ·
India's manufacturing sector received a significant boost with the announcement of a ₹62,500 crore mobile manufacturing scheme designed to strengthen the country's electronics production capabilities over the next five years.
The production-linked incentive (PLI) programme offers financial support of up to 5 per cent on incremental sales, targeting both established manufacturers and domestic mobile phone brands. The scheme includes additional benefits for companies that source key components locally, aiming to develop a robust domestic supply chain in the electronics industry.
Under the framework, eligible manufacturers will receive incentive payments based on their production volumes and the degree to which they utilise domestically-sourced materials in their devices. The structure encourages companies to increase their manufacturing footprint in India while building relationships with local component suppliers.
Industry analysts view the initiative as a strategic move to reduce India's dependence on imports and position the country as a competitive global manufacturing hub for mobile phones and related electronics. The scheme aligns with the government's broader "Make in India" objectives and is expected to generate employment opportunities across manufacturing and supply chain operations.