Last Updated:
India plans a second phase of the PLI scheme for smartphones to boost exports and support local players, after reaching 20.5 billion dollars in mobile phone exports in CY2024.
India clocked exports worth $20.5 billion in mobile phones in CY2024, as per a study by the Centre for Development Studies (CDS).
After a successful first phase of the production-linked incentive (PLI) scheme for smartphones, which witnessed a massive growth in mobile phone manufacturing, the Indian government is considering the second phase to maintain the export momentum and strengthen the competitiveness of local players against global competitors like China and Veitnam, according to Moneycontrol report.
The government had approved the production-linked incentive scheme for smartphones in 2020, with a timeline of 5 years till 2025. It aimed to make India a smartphone manufacturing hub and promote exports to other countries.
The MC report stated that industry executives are pushing for PLI 2.0, which is critical for the country’s target of $500-billion electronics output by 2030.
However, the formal consultations are yet to begin with stakeholders on the PLI 2.0 framework, the MC report said.
From Import Reliant To Export Hub
Thanks to the government’s efforts, interventions and incentives, India has become the world’s largest exporter of mobile phones from a heavily import-reliant market.
India clocked exports worth $20.5 billion in mobile phones in CY2024, as per a study by the Centre for Development Studies (CDS).
In 2014-15, India depended heavily on mobile imports to meet domestic demand. A decade later, the picture has flipped, with mobile phone exports touching USD 24.1 billion in 2024-25 — a staggering 11,950% jump from just USD 0.2 billion in 2017-18. The report terms this shift as “structural,” noting that exports now outpace domestic consumption, a rare phenomenon for most developing economies. India has maintained a steady positive net export trend in mobile phones since 2018-19.
A key driver of this transformation has been the rise in Domestic Value Addition (DVA), both directly by manufacturers and indirectly through local suppliers and service providers. Total DVA reached 23% of production value in 2022-23, crossing USD 10 billion. Direct DVA rose 283% to USD 4.6 billion between 2019-20 and 2022-23, while indirect DVA — covering component manufacturing and service support — surged 604% to USD 3.3 billion over the same period.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
Read More
