India doubles down on mobile manufacturing; Cabinet approves Rs 62,500 crore mobile PLI 2.0

The Indian Union Cabinet has greenlit an extensive Mobile Phone Manufacturing Scheme (MPMS) worth Rs 62,500 crore, set to replace the previous PLI scheme for electronics, which concluded on March 31, 2026. This new initiative aims to propel India beyond mere assembly, fostering the creation of indigenous smartphone brands and enhancing local design capabilities. Scheduled to span five financial years, from 2026-27 to 2030-31, the scheme is poised to strengthen India’s position in the global smartphone market. In a remarkable milestone, smartphones became the nation's leading export product by value in 2025, achieving exports worth Rs 2.62 lakh crore. Apple played a significant role in this surge, with major contributions from manufacturers like Foxconn, Tata Electronics, and Pegatron, all operating within the country. India now holds the title of the second-largest mobile phone producer worldwide, trailing only behind China. The fiscal year 2024-25 saw mobile production soar to Rs 5.5 lakh crore, a substantial increase from Rs 2.14 lakh crore in FY 2019-20. Additionally, smartphone exports witnessed an extraordinary rise, escalating from Rs 27,000 crore in FY 2019-20 to Rs 2 lakh crore in FY 2024-25, marking an eight-fold increase. With the introduction of the MPMS, the government anticipates smartphone production will reach around Rs 39,00,000 crore. This initiative is also expected to create approximately 60,000 direct jobs, especially in smaller towns and rural regions, providing significant employment opportunities. The ultimate goal is to transform India from a global assembly hub into a true center of innovation, where phones are designed, patented, and marketed under Indian brand names.