Mobile Manufacturing Experiences Significant Growth Under PLI
Under the National Policy on Electronics (NPE) 2019, the Ministry of Electronics and Information Technology (MeitY) has introduced two significant Production Linked Incentive (PLI) schemes aimed at bolstering large-scale electronics manufacturing and IT hardware production in India. These initiatives are part of a broader government strategy that has successfully fostered a robust electronics manufacturing ecosystem over the past decade. The PLI schemes, along with other supportive measures, have transformed India into a major player in the global electronics market, particularly in mobile manufacturing.
Government Initiatives Driving Growth
The Indian government has implemented several key initiatives to enhance the electronics manufacturing landscape. The PLI schemes for large-scale electronics manufacturing and IT hardware are pivotal in this transformation. Additionally, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and the Electronics Manufacturing Clusters (EMC and EMC 2.0) Scheme have been instrumental in establishing a conducive environment for manufacturing.
Moreover, the Public Procurement (Preference to Make in India) Order 2017 prioritizes domestically manufactured products in public procurement processes. Reforms in taxation, including the rationalization of tariff structures and exemptions on basic customs duties for capital goods, have further incentivized local production. The allowance of 100% Foreign Direct Investment (FDI) in electronics manufacturing has also played a crucial role in attracting investment and expertise to the sector. As a result, the value addition in electronics manufacturing in India has surged to an estimated 18-20% across various product categories.
Impact on Mobile Manufacturing
The PLI Scheme for Large Scale Electronics Manufacturing has had a profound impact on the mobile manufacturing sector in India. This initiative has facilitated a remarkable shift from being a net importer to a net exporter of mobile phones. India has now emerged as the second-largest mobile manufacturing country globally. The growth in electronics production and exports is evident from the statistics:
– In 2014-15, the production of electronics goods was valued at ₹1.9 lakh crore, which is projected to reach ₹11.3 lakh crore by 2024-25, marking a sixfold increase.
– Exports of electronics goods have similarly surged from ₹38,000 crore to an anticipated ₹3.27 lakh crore during the same period, reflecting an eightfold increase.
– The number of mobile manufacturing units has skyrocketed from just two to 300, indicating a 150-fold increase.
These figures underscore the significant advancements in mobile phone production, which has risen from ₹18,000 crore in 2014-15 to an expected ₹5.45 lakh crore by 2024-25, a staggering 28-fold increase.
Investment and Employment Generation
The PLI Scheme for Large Scale Electronics Manufacturing has attracted substantial investment, totaling ₹12,390 crore. This investment has led to a cumulative production of ₹8,44,752 crore and exports worth ₹4,65,809 crore. Additionally, the scheme has generated approximately 1,30,330 direct jobs as of June 2025.
Similarly, the PLI Scheme 2.0 for IT Hardware has garnered a cumulative investment of ₹717.13 crore, resulting in a production value of ₹12,195.84 crore and the creation of 5,056 direct jobs. Over the past five years, the total Foreign Direct Investment (FDI) in electronics manufacturing has reached USD 4,071 million, with beneficiaries of MeitY’s PLI schemes contributing USD 2,802 million to this total.
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