India Emerges as a Global Hub for Mobile Manufacturing
The latest Economic Survey for 2025-26, presented in Parliament by Union Finance Minister Nirmala Sitharaman, highlights a significant shift in India’s mobile manufacturing landscape. The Production Linked Incentive (PLI) Scheme, initiated in 2020, has successfully attracted major smartphone companies to relocate their production to India, establishing the country as a leading hub in mobile device manufacturing.
Aligned with the vision of ‘Aatmanirbhar Bharat’, the PLI scheme now spans 14 crucial sectors with a budget of ₹1.97 lakh crore. As of September 2025, the initiative has secured over ₹2.0 lakh crore in actual investments, generating an impressive ₹18.70 lakh crore in incremental production/sales and creating over 12.60 lakh jobs, both directly and indirectly.
Impressive Growth in Exports and Incentives
The survey details that cumulative incentives of ₹23,946 crore have been distributed across 12 sectors, with 806 applications approved for all 14 sectors under the PLI scheme. Exports have also flourished, surpassing ₹8.20 lakh crore, predominantly driven by the electronics, pharmaceuticals, and telecom sectors. The National Manufacturing Mission (NMM), introduced in the Union Budget 2025-26, further bolsters these initiatives.
Investing in Research and Development
To support innovation at a larger scale, the government has introduced a new Research, Development and Innovation (RDI) Fund with a total outlay of ₹1 lakh crore over the next six years, allocating ₹20,000 crore for FY26. Alongside, the establishment of the Anusandhan National Research Foundation (ANRF) aims to enhance India’s research and innovation ecosystem, offering strategic funding and collaboration opportunities among industry, academia, and government.
India’s Rising Innovation Profile
The Economic Survey also notes that India’s ranking in the Global Innovation Index (GII) has significantly improved, jumping from 66th in 2019 to 38th in 2025. This positions India at the forefront within its income group and marks its leadership in the Central and Southern Asia region. Major cities such as Bengaluru, Delhi, and Mumbai are now recognized among the world’s top 50 innovation-intensive clusters.
Strengthening Intellectual Property and Startups
India’s progress in Intellectual Property (IP) is noteworthy; the country ranks 4th in trademarks, 6th in patents, and 7th in industrial designs globally as of 2024. The period from FY20 to FY25 witnessed almost a doubling in patent applications and a significant increase in trademark registrations. Since the launch of the Startup India Initiative in 2016, the number of recognized startups has surged from around 500 to over 2 lakh by 2025.
Advancing Semiconductor Manufacturing
As part of the government’s strategic approach, ten semiconductor manufacturing and packaging projects have been approved with a collective investment of approximately ₹1.60 lakh crore across six states. The India Semiconductor Mission aims to build resilience and address structural vulnerabilities in domestic semiconductor production. Supported by a ₹76,000 crore incentive framework, this mission focuses on fostering a comprehensive domestic semiconductor ecosystem.
Overall, the Economic Survey 2025-26 underscores the significant strides India has made in enhancing its manufacturing capabilities, innovation landscape, and global competitiveness.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
