Government Set to Launch Mobile PLI 2.0 Initiative with Over $5 Billion Allocation by May

Government to Launch New Production-Linked Incentive Scheme for Mobile Phone Exports

The Indian government is planning to introduce a new production-linked incentive (PLI) scheme to boost mobile phone exports from the country by May with a significant outlay of over $5 billion, approximately Rs 46,000 crore. This move is aimed at increasing the country's exports and making it a major player in the global mobile phone manufacturing industry.

The previous Scheme for Large Scale Electronics Manufacturing (LSEM), launched in 2020 with a budget of Rs 40,995 crore, or approximately $5.7 billion based on the exchange rate at that time, was a production-linked incentive scheme (PLI) for mobile phones. The new scheme, dubbed PLI 2.0, is expected to focus on boosting exports, with a target to double the export of mobile phones from India.

According to official data, the previous scheme has shown promising results, with smartphones worth Rs 2.62 lakh crore, approximately $28 billion, being exported in 2025. Apple emerged as a major beneficiary of the scheme, showcasing its success. The total exports under the scheme till February 2026 have crossed 6.2 lakh crore, a 27 per cent increase from the target of Rs 4.87 lakh crore set up under the scheme.

| Scheme | Target | Actual Exports (Rs crore) | Percentage Increase | | --- | --- | --- | --- | | PLI 1.0 | Rs 4.87 lakh crore | Rs 6.2 lakh crore | 27% |

However, despite the scheme's success, it has fallen short of its employment targets, generating 1.85 lakh jobs, which is 8 per cent less than the target of 2 lakh jobs envisioned by the government. The Ministry of Electronics and IT is currently discussing the new PLI scheme with the Finance Minister, with plans to place it before the cabinet for final approval.