India’s Smartphone Production Crosses $71 Billion Under PLI Scheme, Industry Tells Government

The Centre has sought feedback from the electronics industry on the performance of the smartphone production-linked incentive (PLI) scheme while considering whether it should be extended, as per The Economic Times news report.  

During inter-ministerial consultations, the commerce ministry asked what had made the scheme successful and requested data on its outcomes from industry bodies and the export promotion council. 

Production and Exports Record Growth 

According to information shared with the government, smartphone production increased from $30 billion in FY20 to $71 billion in FY26. Exports rose from $3 billion to $29.4 billion over the same period. 

The industry also highlighted India's growing presence in the US market. Mobile phone exports to the US reached $19.7 billion in calendar year 2025, up 178% from the previous year. Mobile phones now account for 21% of India's merchandise exports to the country. 

Domestic Value Addition Improves 

In its submission, the India Cellular and Electronics Association (ICEA) said domestic value addition in smartphone manufacturing has increased to 18-19%, compared with much lower levels when the scheme was introduced.  

The association said this progress was achieved even after restrictions were imposed on investments from countries sharing a land border with India. 

The industry body also noted that China reached around 38% value addition over nearly four decades, while India's manufacturing ecosystem has expanded within a much shorter period. 

Industry Points to Broader Outcomes 

The ICEA said the smartphone PLI has met the objectives set under the policy. Besides higher production and exports, it cited employment generation, skill development, technology transfer and expansion of the supplier ecosystem as key outcomes. 

The association added that the scheme remained focused on manufacturing and exports instead of combining several policy objectives.  

It said this approach helped improve implementation. ICEA's members include Apple, Foxconn, Tata Electronics, Google, Dixon, Flex, Motorola and Corning. 

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Conclusion 

The industry's submission will form part of the government's assessment on extending the smartphone PLI scheme. Production, exports, and local value addition were among the key outcomes highlighted during the review. 

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