Cabinet clears Rs 62,500 crore mobile manufacturing scheme to boost Indian phone brands
The Union Cabinet approved a Rs 62,500 crore scheme succeeding PLI, focused on local sourcing, R&D incentives and Indian smartphone brands over 5 years. Targeting 35-40% global production share and Rs 39 lakh crore output, the policy strengthens electronics retail supply chains, export capacity and roughly 60,000 jobs.
What happened
Apple · Union Cabinet cleared a Rs 62,500 crore mobile manufacturing scheme succeeding PLI, focused on local sourcing, R&D and Indian smartphone brands,
Key facts
- Rs 62,500 crore scheme
- 5 years
- 24% local value addition
- 2.25%-5% incentive
- 3% R&D incentive
- 1.5% sourcing incentive
- Rs 39 lakh crore production target
- 60,000 jobs
Why this matters
The shift from PLI to R&D-linked incentives and local-sourcing mandates opens M&A and JV opportunities in component makers and Indian smartphone brands positioned to capture the localization wave.
What to watch
- Final scheme guidelines defining eligible value-add categories and disbursement mechanics
- First major component-maker plant commitments (semis, display, PCB)
- Apple/Samsung capacity reallocation signals from China to India
- Handset ASP movement in domestic retail over next 3 quarters
- Job-creation and localization milestone reporting vs 60,000 target
- Global component vendors evaluate India JV/plant announcements to qualify for scheme benefits
- Domestic contract manufacturers (Dixon, Optiemus, Bharat FIH) bid for R&D-linked incentives
- Retail chains prep expanded shelf space and financing for Indian-brand and locally-made SKUs
- State governments compete with land/power sweeteners to host new component clusters