India Emerges As Second Largest Mobile Manufacturer

12 Feb 2026 CW Team

The Production Linked Incentive scheme for Large Scale Electronics Manufacturing introduced in 2020 sought to boost domestic mobile manufacturing and has coincided with production more than doubling from Rs 2.14 tn in fiscal 2019–20 to Rs 5.5 tn in fiscal 2024–25. Mobile phone exports grew from Rs 270 bn to Rs 2 tn in the same period and the scheme reported investments of Rs 151.72 bn and additional employment of 171,448 persons by December 2025. A subsequent PLI 2.0 for IT hardware launched in 2023 aimed to foster manufacturing of laptops, tablets and servers and to strengthen supply chains.

Cumulative outputs under the PLI schemes were reported at Rs 4.96 tn in fiscal 2023–24, Rs 7.67 tn in fiscal 2024–25 and Rs 10.39 tn up to 31 December 2025, with incremental production of Rs 2.03 tn, Rs 2.71 tn and Rs 2.45 tn respectively. The schemes were said to have yielded cumulative production of Rs 165.31 bn, cumulative investment of Rs 8.57 bn and direct employment of 4,776 by December 2025. Policy measures cited include SPECS, electronics manufacturing clusters, the Semicon India Programme and preference in public procurement for domestically produced goods.

The government highlighted tax reforms, exemption on basic customs duty for capital goods and permission for full foreign direct investment in electronics manufacturing. Officials presented this as strengthening domestic ecosystem across consumer, industrial and telecom electronics and advancing India as a manufacturing hub.

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Government initiatives under Make in India and Atmanirbhar Bharat have expanded electronics manufacturing in India over past eleven years, reflected in production and export growth across sectors. Production of electronics goods rose from Rs 1.9 trillion (tn) in 2014–15 to Rs 11.3 tn in 2024–25, while exports increased from Rs 190 billion (bn) to Rs 3.3 tn over same period. Mobile phone production increased from Rs 180 bn to Rs 5.5 tn and mobile exports rose from Rs 10 bn to Rs 2 tn, signalling the country becoming a net exporter of mobile phones. The rise has been attributed to targeted policy measures and incentives. The Production Linked Incentive scheme for Large Scale Electronics Manufacturing introduced in 2020 sought to boost domestic mobile manufacturing and has coincided with production more than doubling from Rs 2.14 tn in fiscal 2019–20 to Rs 5.5 tn in fiscal 2024–25. Mobile phone exports grew from Rs 270 bn to Rs 2 tn in the same period and the scheme reported investments of Rs 151.72 bn and additional employment of 171,448 persons by December 2025. A subsequent PLI 2.0 for IT hardware launched in 2023 aimed to foster manufacturing of laptops, tablets and servers and to strengthen supply chains. Cumulative outputs under the PLI schemes were reported at Rs 4.96 tn in fiscal 2023–24, Rs 7.67 tn in fiscal 2024–25 and Rs 10.39 tn up to 31 December 2025, with incremental production of Rs 2.03 tn, Rs 2.71 tn and Rs 2.45 tn respectively. The schemes were said to have yielded cumulative production of Rs 165.31 bn, cumulative investment of Rs 8.57 bn and direct employment of 4,776 by December 2025. Policy measures cited include SPECS, electronics manufacturing clusters, the Semicon India Programme and preference in public procurement for domestically produced goods. The government highlighted tax reforms, exemption on basic customs duty for capital goods and permission for full foreign direct investment in electronics manufacturing. Officials presented this as strengthening domestic ecosystem across consumer, industrial and telecom electronics and advancing India as a manufacturing hub.

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