India Unveils ₹62,500-Crore Manufacturing Boost as Tech Giants Pivot Toward New Production Hubs
NEW DELHI — India is doubling down on its ambition to become a global electronics manufacturing powerhouse, announcing a massive ₹62,500-crore mobile phone manufacturing scheme. The policy shift comes as the government eyes a significant expansion in the country’s manufacturing landscape, with global tech titans Apple and Google poised to play pivotal roles in the next phase of growth.
A Diversified Manufacturing Future
Electronics and IT Minister Ashwini Vaishnaw revealed that the government expects Apple to evolve its Indian operations beyond iPhone assembly, potentially integrating other hardware categories into its local ecosystem.
Simultaneously, the administration sees a major opportunity for Google to shift a substantial portion of its export-oriented device production away from China. Minister Vaishnaw noted that as global firms seek to diversify their supply chains, India is increasingly viewed as a primary, stable alternative for high-end device manufacturing.
The New Manufacturing Roadmap
The newly notified Mobile Phone Manufacturing Scheme—set to run through the 2030-31 fiscal year—is designed to replace the previous production-linked incentive (PLI) framework. According to government data, the plan focuses on three core pillars: increasing scale, deepening domestic value addition, and nurturing homegrown smartphone brands.
Under the new guidelines, manufacturers can qualify for incentives ranging from 2.25% to 5% on eligible sales. To encourage a robust local supply chain, the government has introduced an additional incentive of up to 1.5% for companies that source critical components domestically, such as camera modules, display panels, batteries, and USB cables.
A Decade of Explosive Growth
The initiative arrives as India cements its status as the world’s second-largest mobile phone manufacturer by volume. Electronics and IT Secretary S. Krishnan highlighted the sector’s meteoric rise, noting that mobile phone exports have grown 166-fold between 2014 and 2025.
“Mobile phones have become a central part of India’s electronics manufacturing and export story,” Krishnan said. The impact is undeniable: in 2014-15, mobile phones accounted for a mere 4% of India’s electronics exports; that figure skyrocketed to approximately 61% last year. In 2025, smartphones officially emerged as the country’s single-largest exported product category.
Empowering Indian Brands
Beyond attracting foreign capital, the government is making a concerted effort to foster local innovation. The new framework includes a dedicated track for Indian smartphone brands, offering a 5% incentive on eligible sales, supplemented by an additional 3% reward for domestic design and Research & Development (R&D). Minister Vaishnaw confirmed that the government is already collaborating with three Indian firms to develop high-volume, best-in-segment designs over the next 14 months.
Industry analysts are optimistic about the long-term impact of these structural changes. Saurabh Agrawal, tax partner at EY India, noted that the scheme’s focus on incremental sales and localization rewards is a strategic move to solidify India’s status as a premier global export hub.
By moving beyond simple assembly and toward deep-tier supply chain integration, India is clearly signaling its intent to dominate the global smartphone value chain for the decade to come.
