Mobile PLI Scheme: Rs 25,000 Crore Direct Tax, 12 Lakh Jobs
Union Minister Ashwini Vaishnaw reveals the mobile PLI scheme generated Rs 25,000 crore in direct taxes and created 12 lakh jobs.
India's push to become a global hub for smartphone production is paying off in significant numbers. Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, has revealed that the mobile PLI scheme has generated a staggering Rs 25,000 crore in direct tax collections, proving the financial viability of the government's incentive-driven model.
The Financial Equation: Incentives vs. Returns
Addressing reports that questioned the effectiveness of the manufacturing model, Minister Vaishnaw provided a clear breakdown of the fiscal impact. While the government disbursed Rs 19,000 crore as incentives under the Production Linked Incentive (PLI) scheme, the returns have exceeded the payouts.
Beyond the direct taxes, the sector has also contributed Rs 3,000 crore in Goods and Services Tax (GST) collections, highlighting a positive net gain for the national exchequer.
A Massive Employment Engine
The impact of the scheme extends far beyond tax brackets, serving as a critical driver for job creation in the country. According to the Minister, the electronics manufacturing sector as a whole now employs 25 lakh people.
Specifically, the mobile manufacturing segment has become a powerhouse of employment, providing livelihoods to 12 lakh individuals, showcasing the scale of industrial growth in this vertical.
Looking Ahead: The Mobile Phone Manufacturing Scheme (MPMS)
As the government looks to deepen domestic value addition and reduce reliance on imports, it is preparing for the next phase of growth. With the current Large Scale Electronics Manufacturing PLI scheme set to end on March 31, 2026, the Union Cabinet has already approved the Mobile Phone Manufacturing Scheme (MPMS).
Key Highlights of the New MPMS:
- Budgetary Outlay: A massive investment of Rs 62,500 crore.
- Timeline: The scheme will operate from FY 2026-27 to FY 2030-31.
- Incentive Structure: Eligible mobile phone sales will receive incentives ranging from 2.25 per cent to 5 per cent.
- Local Sourcing Bonus: An additional incentive of up to 1.5 per cent is available for companies that source key components and sub-assemblies domestically.
- Support for Homegrown Brands: Special incentives are linked to research, development, and design for Indian mobile brands.
Projected Growth and Global Ambitions
The Ministry of Electronics and Information Technology is eyeing an ambitious future. During the tenure of the new scheme, cumulative mobile phone production is expected to hit approximately Rs 39 lakh crore. This surge is anticipated to significantly boost India's exports and further strengthen its position in the global supply chain.
Additionally, the new framework is projected to create around 60,000 more direct jobs, ensuring that the momentum of the "Make in India" initiative continues to accelerate.