India is preparing a new Production Linked Incentive (PLI) scheme for smartphones, a move that could further strengthen the country’s role in the global electronics supply chain. The proposed plan is expected to support major manufacturers such as Apple, Samsung Electronics, and several contract manufacturing firms operating in India.
Officials familiar with the policy discussions say the next phase of the scheme aims to increase domestic value addition, expand exports, and encourage deeper local manufacturing. The initiative is part of the government’s broader effort to make India a major global electronics production hub.
The development comes at a time when smartphone exports from India are rising rapidly, driven largely by global supply chain diversification and increased production by international brands.
Background: How the Smartphone PLI Scheme Changed India’s Electronics Industry
The smartphone industry has been one of the biggest beneficiaries of India’s Production Linked Incentive (PLI)program launched in 2020.
The scheme was designed to attract global electronics manufacturers to India by offering financial incentives based on incremental production and sales.
Since its launch, several companies have expanded their operations in India, including global smartphone brands, contract manufacturers, and component suppliers.
Major contract manufacturing partners such as Foxconn, Pegatron, and Wistron have also built or expanded facilities in India.
The policy has helped India become one of the largest smartphone manufacturing centers in the world.
According to government data, India now produces hundreds of millions of smartphones every year, with a growing share exported to global markets.
Why the Government Is Planning a New Smartphone PLI Scheme
The government is now exploring a new version of the smartphone PLI program as the first phase approaches completion.
The updated scheme is expected to focus on several strategic goals.
First, policymakers want to increase domestic value addition. While India assembles a large number of smartphones, many key components are still imported.
Encouraging local component manufacturing is therefore a major priority.
Second, the government wants to expand smartphone exports, which have become a major driver of India’s electronics sector.
Smartphones are now among the top export categories from India, reflecting the success of the earlier incentive program.
Third, the new scheme aims to support the growth of local suppliers and technology ecosystems, ensuring that more parts of the supply chain are located within India.
Major Global Smartphone Brands Likely to Benefit
Large smartphone brands operating in India are expected to gain from the next phase of incentives.
Among the biggest beneficiaries could be Apple, which has significantly expanded its manufacturing footprint in India over the past few years.
Several of Apple’s contract partners now assemble iPhones in Indian factories, mainly for both domestic sales and exports.
India has gradually become an important production base for the company as it diversifies its manufacturing operations.
Another key player is Samsung Electronics, which operates one of the world’s largest smartphone manufacturing plants in Noida.
Samsung has been a major participant in the original PLI scheme and has used the incentives to expand its production and export capacity.
Other smartphone makers and contract manufacturers are also expected to participate if a new program is introduced.
India’s Rapid Rise as a Smartphone Export Hub
The smartphone PLI program has played a major role in transforming India into a fast-growing export hub.
Over the past few years, the country has seen a sharp increase in smartphone shipments to global markets.
Industry data shows that smartphone exports from India crossed tens of billions of dollars in recent years, making electronics one of the fastest-growing export sectors.
A large share of these exports comes from factories producing devices for global brands.
The government has repeatedly highlighted the growth of smartphone exports as a key success story of the “Make in India” manufacturing strategy.
With the global electronics supply chain shifting and companies looking to diversify production, India is increasingly viewed as an alternative manufacturing base.
Focus on Local Components and Supply Chain Development
One of the biggest challenges for India’s smartphone sector remains low domestic value addition.
Many critical components such as display panels, semiconductor chips, camera modules, and battery components are still imported from other countries.
The next phase of incentives is therefore expected to encourage component manufacturing inside India.
Experts say this could help increase the share of locally produced parts in smartphones assembled in India.
Developing a deeper electronics ecosystem could also create thousands of new jobs across manufacturing, logistics, and component supply chains.
How the PLI Scheme Supports Economic Growth
The Production Linked Incentive framework has become a central pillar of India’s industrial policy.
Apart from smartphones, similar schemes exist for sectors such as electronics components, automobiles, pharmaceuticals, and solar equipment.
These programs aim to attract investment and boost manufacturing capacity.
In the smartphone sector, the policy has already led to large-scale investment by global companies and the creation of new manufacturing clusters.
Factories in states such as Tamil Nadu, Uttar Pradesh, and Karnataka have become major centers for electronics production.
Industry leaders say policy stability and long-term incentives are crucial for sustaining this momentum.
Global Supply Chain Shifts Strengthen India’s Position
The push for new incentives also reflects changes in global manufacturing trends.
Many technology companies are diversifying their production networks to reduce dependence on a single country.
India has emerged as a strong alternative due to several advantages including a large domestic smartphone market, competitive manufacturing costs, expanding infrastructure, and government incentives for electronics production.
As a result, global manufacturers are gradually increasing their investments in Indian facilities.
A new PLI scheme could accelerate this shift and further strengthen India’s position in the global electronics industry.
Industry Expectations from the New Policy
Manufacturers and industry groups are watching the government’s policy discussions closely.
Industry stakeholders say the next phase of incentives should focus on encouraging component manufacturing, supporting advanced technologies, strengthening local supply chains, and increasing export competitiveness.
Companies also expect the new policy to offer predictable incentives and clear eligibility rules, similar to the earlier program.
Such measures could help maintain investor confidence and encourage further expansion in the sector.
What Comes Next
Government officials have indicated that policy consultations are ongoing and a formal announcement could come once discussions with industry stakeholders are complete.
If implemented, the next phase of the smartphone PLI scheme could further accelerate India’s manufacturing growth.
For global technology companies and domestic suppliers alike, the program could open the door to greater investment, higher exports, and stronger local production capacity.
Conclusion
India’s plan to introduce a new smartphone PLI scheme signals the government’s intent to deepen its role in global electronics manufacturing.
The earlier phase of incentives helped transform India into a major smartphone production base.
A new round of policy support could now push the sector toward higher exports, stronger supply chains, and greater local value addition.
For companies like Apple and Samsung Electronics, the initiative may offer fresh opportunities to expand production in India.
For the country’s economy, it represents another step toward building a globally competitive electronics manufacturing ecosystem.
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edited by D.Rishidhar Reddy
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