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What is the story about?
The government has collected a total of ₹3.25 lakh crore from the mobile phone industry against ₹19,000 crore disbursed under the mobile phone production-linked incentive (PLI) scheme, according to data shared by Union Minister Ashwini Vaishnaw on Wednesday.
Data shared by the Union Electronics and IT Minister on X showed that the government paid ₹19,000 crore in incentives under the scheme and collected ₹25,000 crore in direct taxes and ₹3 lakh crore in 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 that questioned India's efforts to promote electronics manufacturing through subsidies funded by public money, compared with China's manufacturing ecosystem.
According to the video, the cost of importing components exceeds the gains India makes from exporting finished mobile phones manufactured with subsidy support funded by taxpayers.
Official data shared by the government in March showed that India exported mobile phones worth ₹2 lakh crore in FY25. Mobile phone imports had become almost negligible, accounting for around 0.02% of domestic demand in FY25, compared with 75% a decade earlier.
The production of electronic goods increased sixfold to around ₹11.3 lakh crore in FY25 from approximately ₹1.9 lakh crore in FY15. Mobile phone production rose to around ₹5.5 lakh crore from approximately ₹0.18 lakh crore over the same period.
Exports of electronic goods increased eightfold to around ₹3.3 lakh crore in FY25 from ₹0.38 lakh crore a decade earlier.
The government has now rolled out the Mobile Phone Manufacturing Scheme (MPMS), with total incentives of ₹62,500 crore, to boost domestic production. The scheme aims to develop Indian smartphone brands whose devices are designed and manufactured indigenously.
Vaishnaw has set October 2028 as the deadline for achieving the target of an Indian smartphone brand.
Data shared by the Union Electronics and IT Minister on X showed that the government paid ₹19,000 crore in incentives under the scheme and collected ₹25,000 crore in direct taxes and ₹3 lakh crore in 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 that questioned India's efforts to promote electronics manufacturing through subsidies funded by public money, compared with China's manufacturing ecosystem.
According to the video, the cost of importing components exceeds the gains India makes from exporting finished mobile phones manufactured with subsidy support funded by taxpayers.
Official data shared by the government in March showed that India exported mobile phones worth ₹2 lakh crore in FY25. Mobile phone imports had become almost negligible, accounting for around 0.02% of domestic demand in FY25, compared with 75% a decade earlier.
The production of electronic goods increased sixfold to around ₹11.3 lakh crore in FY25 from approximately ₹1.9 lakh crore in FY15. Mobile phone production rose to around ₹5.5 lakh crore from approximately ₹0.18 lakh crore over the same period.
Exports of electronic goods increased eightfold to around ₹3.3 lakh crore in FY25 from ₹0.38 lakh crore a decade earlier.
The government has now rolled out the Mobile Phone Manufacturing Scheme (MPMS), with total incentives of ₹62,500 crore, to boost domestic production. The scheme aims to develop Indian smartphone brands whose devices are designed and manufactured indigenously.
Vaishnaw has set October 2028 as the deadline for achieving the target of an Indian smartphone brand.
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