Government Reports ₹3.25 Lakh Crore Tax Collection Against ₹19,000 Crore Mobile PLI Payouts

The Indian government has collected a total of ₹3.25 lakh crore from the mobile phone industry in lieu of the ₹19,000 crore mobile production-linked incentive (PLI) disbursed to the sector, according to data shared by Union Minister for Railways, Information & Broadcasting, and Electronics & IT, Ashwini Vaishnaw.

According to the statistics shared by the minister, the government paid ₹19,000 crore in incentives under the scheme. In return, it collected ₹25,000 crore as direct tax and ₹3 lakh crore in the form of Goods and Services Tax (GST) from the beneficiaries.

Employment and Manufacturing Growth

Highlighting the impact on employment, Vaishnaw stated that electronics manufacturing currently employs 25 lakh people, with mobile manufacturing alone accounting for 12 lakh jobs. The data was shared in response to a media opinion video discussing the policy drawbacks of utilizing public subsidies for electronics manufacturing compared to the market ecosystem in China.

Official data shared by the government in March indicates significant growth in the sector over the last decade. Electronic goods production increased sixfold to around ₹11.3 lakh crore in 2024-25 from approximately ₹1.9 lakh crore in 2014-15. Within this segment, mobile phone production grew from about ₹0.18 lakh crore to around ₹5.5 lakh crore over the same period.

Export and Import Trends

India's export and import dynamics in the mobile and electronics sector have shifted notably over the past ten years. Mobile phone exports reached ₹2 lakh crore in the fiscal year 2025. Meanwhile, mobile phone imports dropped significantly, becoming almost negligible at around 0.02 percent of domestic demand in 2024-25, compared to 75 percent a decade ago.

Additionally, total exports of electronic goods increased eightfold, rising from ₹0.38 lakh crore a decade ago to around ₹3.3 lakh crore in 2024-25.

Future Policy Outlook

Building on the progress of the initial PLI framework, the government has introduced the Mobile Phone Manufacturing Scheme (MPMS). This new initiative allocates a total incentive of ₹62,500 crore aimed at bolstering local production. The scheme specifically targets the development of Indian smartphones that are designed and manufactured indigenously. The Ministry of Electronics and IT has established an October 2028 timeline to meet the target for launching an Indian smartphone brand.

"The data presented by the government demonstrates a strong fiscal return on the mobile production-linked incentive scheme, shifting India from an import-dependent market to a major manufacturing and export hub over the past decade. With the introduction of the new Mobile Phone Manufacturing Scheme and a target for indigenously designed smartphones by 2028, domestic manufacturers and component suppliers have a clear window to scale operations, build local supply chains, and capture a larger share of the value chain." — Dr. Shishir Gupta, Founder & CEO, StartupLanes