Mobile PLI scheme yields ₹3.25 lakh crore in tax collections

India's mobile manufacturing sector has delivered significant returns on government investment through the Production Linked Incentive (PLI) scheme, collecting ₹3.25 lakh crore in taxes against ₹19,000 crore in incentives provided, according to official data released in March.

The scheme has catalysed a dramatic shift in India's smartphone import dependence. Mobile phone imports have declined to just 0.02% of domestic demand in fiscal 2024-25, a sharp reversal from 75% a decade earlier. This transformation underscores the effectiveness of targeted industrial policy in building domestic manufacturing capacity.

Export performance has emerged as another key metric of the scheme's success. India exported mobile phones valued at ₹2 lakh crore during fiscal year 2025, reflecting growing international competitiveness of domestic manufacturers participating in the incentive programme.

The PLI scheme, launched to reduce India's dependence on imported electronics and create manufacturing jobs, has attracted major global handset makers to establish production facilities in the country. The scheme's performance suggests the investment has yielded substantial economic returns through tax generation, employment creation, and reduced import bills.