India Drafts Export‑Linked Smartphone PLI to Deepen Localisation and Boost Shipments

India is preparing a new round of smartphone manufacturing incentives that will link government support to exports and deeper use of locally made components, according to Bloomberg reports. The plan is effectively a second phase of the flagship production‑linked incentive scheme for smartphones.

Unlike the current programme, which emphasises incremental domestic output, the new design explicitly ties benefits to export performance and localisation. Officials are still finalising the policy architecture, incentive size and overall budget through inter‑ministerial consultations.

How The Proposed Scheme Differs from The Current Smartphone PLI

The upcoming framework intends to reward companies for shipping devices overseas, adding an export‑oriented layer to the earlier policy. The current Smartphone PLI runs until March 31, 2026, and primarily targets higher domestic production from approved applicants.

The shift in design marks a transition from assembly‑focused output to embedding exports in the incentive structure. It also signals the government’s aim to anchor more value within India’s electronics ecosystem rather than relying on imported sub‑assemblies.

Expected Beneficiaries and Strategic Rationale

News reports suggest the plan would benefit Apple Inc., Samsung Electronics Co. Ltd., and their supplier ecosystems. Apple’s contract manufacturers account for roughly three‑fourths of India’s smartphone exports, highlighting the company’s central role in export momentum.

With most smartphones sold domestically already assembled locally, policymakers view the first PLI as having met its demand‑side goal. The next phase is positioned to drive higher value addition alongside export scale.

Exports, Localisation and Supply Chain Integration

Tying subsidies to overseas shipments is designed to integrate India more deeply into global supply chains. Manufacturers are recalibrating production footprints to hedge geopolitical risks, and India seeks to capture a larger share of export‑oriented assembly and component making.

The new phase’s localisation emphasis aims to encourage domestic sourcing of key inputs, complementing export incentives. This dual focus is intended to catalyse a broader component ecosystem rather than just final device assembly.

Policy Status, Timelines and Apple’s Expanding Role

The policy blueprint, incentive rates and budget envelope remain under discussion and may change during consultations. The overhaul reflects Apple’s growing importance in India’s electronics strategy and its ambitions for outbound shipments.

Apple aims to ship most US‑bound iPhones from India by year‑end, reinforcing India’s standing as a key supplier to the US market. By linking benefits to exports and localisation, the government seeks to build on the base created by the current scheme as it approaches March 31, 2026.

Read More: India Reports Strong Progress Under PLI Scheme With ₹1.91 Lakh Crore Incentive Outlay.

Conclusion

India is drafting an export‑linked second phase of the smartphone PLI that explicitly ties subsidies to overseas shipments and local component use. The move is expected to support companies such as Apple, Samsung and their suppliers, given their existing export orientation.

With local assembly already widespread, the redesign shifts attention to value addition and global integration. The policy remains in flux, with its final contours to be decided through inter‑ministerial consultations.

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