India is set to introduce fresh incentives to support local mobile phone production following the conclusion of its production-linked incentive (PLI) scheme for the sector. This move is expected to particularly benefit global smartphone giants like Apple and Samsung, which have significantly expanded their manufacturing operations in the country recently. The government’s decision to continue backing the industry comes amidst concerns that India might lose some tariff advantages over China in exporting to the United States.
Boosting smartphone manufacturing has emerged as a crucial element of Prime Minister Narendra Modi’s economic strategy, aiming to bolster domestic manufacturing and enhance India’s standing in global supply chains. The government targets a substantial rise in the country’s electronics manufacturing output to $500 billion by the fiscal year 2030. Notably, India witnessed a remarkable growth in mobile phone production, reaching nearly $60 billion in the 2024–25 fiscal year, representing a 28-fold surge over the past decade.
With mobile phone exports surging to around $21.7 billion during the same period, marking a 127-fold increase, smartphones have become India’s top exported product in 2025. Officials are now contemplating tying the new incentives to export performance to further drive globally competitive manufacturing. The proposed scheme is anticipated to cover investments from April this year onwards, building on the success of the previous production-linked incentive scheme that played a pivotal role in encouraging companies to ramp up local production.
Major manufacturers like Apple and Samsung had previously leveraged India’s production-linked incentive scheme, a program valued at nearly $21 billion, aimed at fostering competition with China’s manufacturing prowess. This initiative not only spurred companies to boost local production but also facilitated Apple in commencing the manufacturing of its latest premium iPhone models in India, transitioning from producing lower-cost versions initially. Moreover, the high tariffs imposed on Chinese goods during the Trump administration prompted some firms to relocate a portion of their production to India.
