Mobile PLI Scheme Generates ₹25,000 Crore in Direct Taxes: Union Minister Ashwini Vaishnaw

India’s mobile phone production-linked incentive (PLI) scheme has generated ₹25,000 crore in direct tax collections against ₹19,000 crore paid out as incentives, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Wednesday. 

In a post on X, Vaishnaw reported that the scheme had also generated ₹3,000 crore in Goods and Services Tax (GST) collections, according to The Economic Times news report.  

His statement came in response to a news report questioning the effectiveness of India’s mobile manufacturing model and the role of government incentives. 

Mobile Manufacturing Accounts for 12 Lakh Jobs 

The electronics manufacturing sector employs 25 lakh people in India, including 12 lakh in mobile phone manufacturing, according to the minister. 

The government has been seeking to increase domestic mobile phone production, expand local sourcing of components and strengthen India’s position in global supply chains. 

Government Approves ₹62,500 Crore Manufacturing Scheme 

In July, the Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore.  

The scheme will operate from FY 2026-27 to FY 2030-31, following the end of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing on 31 March 2026. 

The new scheme offers incentives of 2.25% to 5% on eligible mobile phone sales. An additional incentive of up to 1.5% is linked to domestic sourcing of key components and sub-assemblies.  

Support is also available for Indian mobile brands, including incentives linked to design and research and development. 

Mobile Phone Production Targeted at ₹39 Lakh Crore 

The Ministry of Electronics and Information Technology estimates that cumulative mobile phone production during the scheme’s tenure will reach approximately ₹39 lakh crore. The programme is also expected to generate around 60,000 direct jobs and increase exports. 

The scheme is intended to sustain manufacturing growth while increasing domestic value addition and component sourcing. Its implementation will run through FY 2030-31. 

Read More: Maharashtra Government Scraps 25% Land Transfer Fee for Renewable Energy Projects! 

Conclusion 

The mobile PLI scheme has generated ₹25,000 crore in direct taxes and ₹3,000 crore in GST collections against ₹19,000 crore in incentives. The new manufacturing scheme will run until FY 2030-31. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.