Mobile PLI scheme: ₹3.25 lakh cr in taxes in lieu of ₹19,000 cr, Vaishnaw defends govt incentives

The government's mobile phone production-linked incentive (PLI) scheme has generated ₹3.25 lakh crore, including direct tax and GST as per Union Minister for Electronics and Information Technology Ashwini Vaishnaw.

The government's mobile phone production-linked incentive (PLI) scheme has collected ₹25,000 crore in direct tax collections and ₹3,00,000 crore in Goods and Services Tax, exceeding the ₹19,000 crore disbursed as incentives, Union Minister for Electronics and Information Technology Ashwini Vaishnaw revealed on Wednesday. Vaishnaw shared the financial gains and job opportunities created by the government in the mobile manufacturing industry.

Ashwini Vaishnaw on Mobile PLI scheme

In a post on X, Vaishnaw said the government had disbursed ₹19,000 crore in incentives under the mobile PLI scheme, while direct tax collections came down to ₹25,000 crore and Goods and Services Tax (GST) collections was at ₹3,00,000 crore.

"Mobile PLI stats as follows: Government incentive paid: ₹19,000 Cr. Direct tax collected: ₹25,000 Cr. GST collected: ₹3,00,000 Cr.

"Electronics manufacturing employs 25 Lakh people; mobile manufacturing alone employs 12 Lakh," the minister said.

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The minister's remarks came in response to a news report which questioned the effectiveness of India's mobile manufacturing model and the contribution of government incentives to the sector.

Long-term plans

According to ANI, the government is looking forward to expanding domestic mobile phone production, increasing local sourcing of components and strengthening India's participation in global supply chains.

In July, the Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS), with a budgetary outlay of ₹62,500 crore. The scheme will be implemented from FY 2026-27 to FY 2030-31. Its objective is to scale up manufacturing, increasing domestic value addition, strengthening supply chains and enhancing the global competitiveness of the industry.

Benefits of the scheme

Under the scheme, eligible mobile phone sales will receive incentives ranging from 2.25 per cent to 5 per cent. An additional incentive of up to 1.5 per cent will be given for domestic sourcing of key components and sub-assemblies. The scheme also extends support to Indian mobile brands through incentives associated with design and research and development of the devices.

According to the Ministry of Electronics and Information Technology, the total mobile phone production during the scheme's tenure is projected to reach approximately ₹39 lakh crore. It is also aiming for a significant increase in exports. The scheme is also expected to create around 60,000 direct jobs in the sector with the proposed incentives and benefits.

The new scheme follows the conclusion of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing on March 31, 2026. With the end of the previous scheme, the government is seeking to sustain the momentum in mobile manufacturing while encouraging deeper domestic sourcing and the growth of Indian brands.

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