Indian Electronics Companies Pursue PLI 2.0 to Capture 30-35% of Global Mobile Production by FY31
With the conclusion of the production-linked incentive (PLI) scheme, India’s electronics sector is advocating for a new expansion initiative, aiming for significant growth in manufacturing and exports over the next five years. Industry leaders have expressed optimism that India could capture 30-35% of the global mobile production market by fiscal year 2031, potentially increasing annual output to between $110 billion and $130 billion. Current figures indicate that India holds approximately 15% of global mobile phone production, with manufacturing output surpassing $64 billion.
Industry’s Push for PLI 2.0
As the existing PLI scheme is set to expire on March 31, industry stakeholders are urging the government to introduce a new version, referred to as PLI 2.0, to maintain the growth momentum. Discussions are ongoing with the Ministry of Electronics and Information Technology (MeitY) regarding this proposed scheme, which is expected to be in effect from 2026 to 2031. Although government officials have indicated that a new incentive program is under consideration, specific details remain unconfirmed. The industry has presented a comprehensive roadmap to the government, outlining strategies to achieve ambitious production and export targets by FY31.
Pankaj Mohindroo, chairman of the India Cellular and Electronics Association (ICEA), emphasized the importance of sustaining current growth levels. He stated, “With a strong foundation, we have an opportunity to achieve 30-35% of global mobile production in the next five years.” Mohindroo highlighted that continued investments and government support are crucial for realizing this vision.
Strengthening the Supply Chain
Industry representatives believe that increasing India’s share of global mobile production will enhance the supply chain and bolster the manufacturing ecosystem. They argue that a focus on scale is essential for long-term sustainability, rather than merely adding value. The government is currently evaluating the necessary domestic value addition for incentives and exploring ways to boost exports while adhering to World Trade Organization regulations.
Experts suggest that the anticipated growth in production will heavily rely on exports, particularly as domestic demand is projected to decline. A recent report indicated that India’s smartphone market could contract by over 13% this year due to rising memory costs, which may lead to price increases of 15-40% for devices.
Export Trends and Market Dynamics
Data from the commerce ministry reveals a significant increase in smartphone exports, which surged by 47.4%, rising from $20.44 billion in 2024 to $30.13 billion in 2025. The United States has emerged as a major market, accounting for $19.7 billion, or 65%, of total exports. In contrast, China’s smartphone exports have decreased from $132.6 billion to $120.6 billion during the same timeframe, with a notable decline in shipments to the US due to tariffs related to fentanyl.
India’s competitive edge in the US market has diminished following the US Supreme Court’s decision to overturn extensive global tariffs imposed during the Trump administration. Meanwhile, China continues to benefit from its robust supply chain and advanced manufacturing capabilities, while India is still in the process of developing these essential elements.
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