Mobile PLI scheme generates Rs25,000 crore in direct taxes: Vaishnaw

The Production Linked Incentive (PLI) scheme for mobile phone manufacturing has generated Rs25,000 crore in direct tax collections against an incentive payout of Rs19,000 crore, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said on Wednesday.
In a post on X, Vaishnaw said the scheme had also contributed Rs3,000 crore in Goods and Services Tax (GST) collections. He highlighted the sector’s employment potential, stating that electronics manufacturing employs 25 lakh people, with mobile manufacturing alone accounting for 12 lakh jobs.His remarks came in response to a news report questioning the effectiveness of India’s mobile manufacturing model and the role of government incentives in the sector.The figures come as the government seeks to expand domestic mobile phone production, increase local sourcing of components and strengthen India’s position in global supply chains.

STORY | Government collects Rs 3.25 lakh crore in taxes in lieu of Rs 19,000 crore mobile PLI: Vaishnaw The government has collected a total of Rs 3.25 lakh crore from the mobile phone industry in lieu of the Rs 19,000 crore mobile production-linked incentive doled out to the segment, according to data shared by Union minister Ashwini Vaishnaw on Wednesday. The stats shared by the Union electronics and IT minister on X showed that the government paid Rs 19,000 crore in incentives under the scheme and in return collected Rs 25,000 crore as direct tax and Rs 3 lakh crore in the form of Goods and Services Tax (GST) from the beneficiaries. "Electronics manufacturing employs 25 Lakh people; mobile manufacturing alone employs 12 Lakh. Cope harder!!" Vaishnaw said. The minister's post came in response to a media opinion video claiming drawbacks of India's attempt to push electronics manufacturing through subsidies using public money compared to the ecosystem that exists in China. According to the video, the import of components costs India more than it gains from exporting finished mobile phones that are made with subsidy support using taxpayers' money. According to the official data shared by the government in March, India exported mobile phones worth Rs 2 lakh crore in fiscal year 2025, and mobile phone imports in the country had become almost negligible at around 0.02 per cent of the domestic demand in 2024-25 from 75 per cent 10 years ago. READ: https://t.co/a1mCKx51dO

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In July, the Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs62,500 crore. The scheme will run from the financial year 2026–27 to 2030–31 and aims to scale up production, deepen domestic value addition, strengthen supply chains and improve global competitiveness.
Under the scheme, incentives ranging from 2.25 per cent to 5 per cent will be provided on eligible mobile phone sales, with an additional incentive of up to 1.5 per cent linked to domestic sourcing of key components and sub-assemblies. It also provides support for Indian mobile brands, including incentives linked to design and research and development.
According to the Ministry of Electronics and Information Technology, cumulative mobile phone production during the scheme’s tenure is expected to reach approximately Rs39 lakh crore, alongside a significant increase in exports. The scheme is also expected to generate around 60,000 direct jobs.The new scheme follows the conclusion of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing on March 31, 2026. The government aims to sustain manufacturing growth while encouraging deeper domestic sourcing, greater value addition and the development of Indian-owned mobile brands.