PLI mobile scheme: ₹3.25 lakh in taxes instead of ₹19,000, Vaishnaw defends government incentives | Today’s news
The government’s Mobile Manufacturing Incentives (PLI) scheme has come together. ₹25,000 crore in direct tax collection and ₹3,00,000 crore in GST which exceeds ₹19,000 crore paid as incentives, Union Minister for Electronics and Information Technology Ashwini Vaishnaw on Wednesday announced. Vaishnaw shared the financial gains and employment opportunities created by the government in the mobile manufacturing industry.
Ashwini Vaishnaw on Mobile PLI scheme
Vaishnaw, in a post on X, said the government had disbursed the money ₹19,000 crore in mobile PLI incentives, while direct tax collections fell to ₹Collection of Goods and Services Tax (GST) was 25,000 crores ₹3,00,000 crores.
“Mobile PLI Stats: Government Incentive Paid: ₹19,000 kr. Direct taxes collected: ₹25,000 kr. GST collected: ₹3,00,000 cr.
“The production of electronics employs 25 million people; the production of mobile devices alone employs 12 million people,” the minister said.
The minister’s remarks were in response to a news report that questioned the effectiveness of India’s mobile manufacturing model and the benefit of government incentives for the sector.
Long term plans
According to ANI, the government is looking forward to expanding domestic manufacturing of mobile phones, increasing local sourcing of components and strengthening India’s participation in global supply chains.
In July, the Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a budget outlay of Rs ₹62,500 million crowns. The scheme will be implemented from FY 2026-27 to FY 2030-31. Its aim is to expand production, increase domestic value added, strengthen supply chains and increase the global competitiveness of the industry.
Advantages of the system
Under the scheme, eligible mobile phone sales will receive incentives ranging from 2.25 percent to 5 percent. An additional incentive of up to 1.5 percent will be provided for domestic supplies of key components and subassemblies. The scheme also extends support to Indian mobile brands through incentives linked to device design and R&D.
According to the Ministry of Electronics and Information Technology, the total production of mobile phones during the duration of the program is expected to reach approx ₹39 million million crowns. They are also trying to significantly increase exports. The program is also expected to create around 60,000 direct jobs in the industry with the proposed incentives and benefits.
The new scheme follows the closure of the Manufacturing Incentive Scheme for Large Electronics Manufacturing on 31 March 2026. With the end of the previous scheme, the government aims to maintain momentum in mobile manufacturing while promoting deeper domestic sourcing and growth of Indian brands.
