Rs 25,000 crore in taxes, 12 lakh jobs: Vaishnaw backs mobile PLI scheme

NEW DELHI: India's mobile phone manufacturing sector has generated Rs 25,000 crore in direct tax collections, exceeding the Rs 19,000 crore paid out by the government as incentives under its production-linked incentive (PLI) scheme.Union minister for electronics and information technology Ashwini Vaishnaw shared the figures on Wednesday while dismissing news reports that questioned the effectiveness of India's mobile manufacturing model.He added that the scheme had also contributed Rs 3,000 crore in Goods and Services Tax (GST) collections.Highlighting the sector's employment contribution, Vaishnaw said, "Electronics manufacturing employs 25 Lakh people; mobile manufacturing alone employs 12 Lakh."The government is now looking to build on the sector's manufacturing base through a new scheme focused on expanding production, increasing the domestic sourcing of components and strengthening India's position in global supply chains.The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) in July, allocating Rs 62,500 crore to the programme.

It will operate from FY 2026-27 to FY 2030-31.The scheme is designed to scale up mobile phone production, increase domestic value addition, strengthen supply chains and improve the industry's global competitiveness. Incentives for eligible mobile phone sales range from 2.25% to 5%, with an additional benefit of up to 1.5% for domestic sourcing of key components and sub-assemblies.Support for Indian mobile brands is also part of the programme, with incentives linked to design and research and development.According to the ministry of electronics and information technology, mobile phone production over the scheme's tenure is expected to total approximately Rs 39 lakh crore, with exports also projected to rise significantly.

The programme is expected to create around 60,000 direct jobs.The new initiative comes after the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing ended on March 31, 2026. The government's focus is now on sustaining manufacturing growth while promoting deeper domestic sourcing and Indian-owned mobile brands.You use AI every day. Now get your AI Quotient.

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