With the end of the production-linked incentives programme, India’s electronics industry has rolled out a new expansion plan, seeking continued government support as it looks to make a strong jump in manufacturing and exports over the next five years. During discussions with the Ministry of Electronics and Information Technology (MeitY), the industry said that by FY 2031, India could have 30-35% of the global production of mobile phones. This would raise annual output to $110-130 billion, with exports estimated at $55-70 billion. At present, according to ET, India accounts for about 15% of global mobile phone production, with manufacturing output exceeding $64 billion. Industry executives said the current production-linked incentive system played a major role in this growth.
With the scheme expiring on March 31, companies are pushing for a new version to keep the momentum going. Talks are underway on the proposed PLI 2.0 scheme, which is likely to run from 2026 to 2031. Government officials said a new incentive program is being considered, although details have not yet been finalized. The industry also shared a roadmap with the government to achieve production and export targets by FY31. “With a strong foundation, we have an opportunity to achieve 30-35% of global mobile phone production in the next five years,” Pankaj Mohindroo, president, Indian Cellular and Electronics Association (ICEA), told ET.
“To achieve this ambition, it is essential to maintain current momentum and continue investments. We are actively engaging with the government to shape the next phase of this growth journey.” Increasing India’s global share will help strengthen the supply chain, deepen the manufacturing ecosystem and support large-scale R&D, industry participants said. One executive said volume is more important than value added alone for long-term sustainability. The government is also studying how much domestic value addition should be required for incentives and how exports can be increased without violating WTO standards. Experts said that production growth will depend largely on exports, as domestic demand is expected to weaken. India’s smartphone market may contract by more than 13% this year due to rising memory costs, which could push device prices up by 15-40%, according to an earlier report. Commerce Department data showed that smartphone exports rose by 47.4%, from $20.44 billion in 2024 to $30.13 billion in 2025. The United States accounted for $19.7 billion, or 65% of total exports. Meanwhile, China’s smartphone exports fell from $132.6 billion to $120.6 billion over the same period, with shipments to the United States falling sharply due to tariffs linked to fentanyl. India’s tariff advantage in the US market has shrunk after the US Supreme Court struck down sweeping global tariffs imposed by the Trump administration. China still has an advantage due to its strong supply chain and advanced manufacturing capabilities, while India is still developing it.
