The electronics industry has reportedly told the government that India can capture 30 to 35 per cent of global mobile phone production over the next five years, with annual output of $110 to 130 billion and exports of $55 to 70 billion.
The industry is in discussions with the Ministry of Electronics and Information Technology (MeitY) on a proposed smartphone production-linked incentive (PLI) 2.0 scheme, likely to run from 2026 to 2031.
India currently accounts for around 15 per cent of global mobile phone production, with annual manufacturing exceeding $64 billion. The existing PLI scheme has been the key driver of this growth, but with it ending on March 31, 2026, the industry is seeking continuation of the stimulus to sustain momentum and build a deeper manufacturing and supply chain ecosystem. As part of the discussions, the industry has shared a roadmap to achieve production and export targets by financial year 2031. An incentive scheme is under consideration, though the modalities are yet to be finalised.
The industry said a higher global share would improve ecosystem depth, consolidate the supplier base, and make research and development investments viable at scale, adding that scale, rather than value addition alone, ensures sustainability.
The government is also examining the level of domestic value addition required to qualify for incentives and exploring ways to boost exports without breaching World Trade Organisation norms.
