India notifies ₹62,500 crore mobile-phone manufacturing incentive scheme
The five-year programme, running from April 2026 to FY2030-31, offers incentives for domestic component sourcing, R&D and product design. It sets turnover and Indian-ownership thresholds for participating manufacturers and brands, aiming to deepen local supply chains and expand mobile exports.
What happened
Government of India · India notified a ₹62,500 crore mobile-phone PLI scheme for FY2027-31, supporting manufacturers and Indian brands, with incentives for
Key facts
- ₹62,500 crore scheme outlay
- Five-year scheme term
- April 1, 2026 to FY2030-31
- ₹10,000 crore minimum FY2025-26 turnover for registered manufacturers/EMS
- 51% Indian ownership requirement for Indian-brand eligibility
- ₹1,000 crore minimum FY2025-26 turnover for Indian-owned firms
- Up to 1.5% additional incentive for domestic component sourcing
- 25% minimum localisation of total annual units
- 3% domestic R&D and product-design incentive under TS2
- ₹39 lakh crore expected cumulative mobile-phone production
- 60,000 expected direct jobs
Why this matters
Corporate-development teams should assess partnerships or acquisitions in Indian components, design and manufacturing assets that can help meet ownership and localization thresholds.
What to watch
- Final scheme guidelines defining incentive rates, eligible components, localization calculation, turnover thresholds and Indian-ownership tests.
- List of approved manufacturers, brands and EMS participants, especially Apple suppliers, Samsung, Xiaomi, Vivo, Oppo, Transsion and leading Indian brands.
- Announcements of new component plants for displays, camera modules, batteries, PCBs, semiconductors or mechanical parts.
- Changes in handset import tariffs, component duties, production-linked incentives or state-level manufacturing subsidies.
- Quarterly evidence of lower locally made handset prices, improved inventory fill rates and rising export volumes.
- Any compliance disputes, WTO challenges, delayed disbursements or local-content shortfalls that could weaken supplier participation.
- Map handset, component and accessory vendors by Indian manufacturing footprint, ownership eligibility and current import dependence.
- Seek supply and pricing commitments from major brands and EMS partners before the April 2026 programme launch.
- Increase planning for locally sourced accessories, chargers, wearables, repairs and replacement-parts inventory, where component localization may accelerate first.
- Build promotional calendars around India-made smartphone ranges, trade-in offers and operator bundles once qualifying models are identified.
- Monitor whether retailer procurement contracts can capture savings from lower duties, incentives or improved domestic supply reliability rather than allowing vendors to retain all benefits.