The Indian Cabinet has approved Rs 62,500 crore for the second version of the mobile phone production-linked incentive (PLI) scheme. This approval aims to boost domestic manufacturing and attract investments in the mobile phone sector. The decision was announced this week, marking a significant government commitment to strengthening India's electronics manufacturing capabilities, according to economictimes.indiatimes.com.
The PLI scheme 2.0 follows the initial PLI program, which provided incentives to mobile phone manufacturers to increase production within India. The new scheme allocates Rs 62,500 crore to incentivize companies over the next several years, encouraging them to expand their manufacturing bases and supply chains domestically. The Cabinet's approval is part of broader efforts to reduce import dependence and enhance the global competitiveness of India's mobile phone industry, economictimes.indiatimes.com reported.
This move is expected to reinforce India’s position as a global hub for mobile phone manufacturing, complementing earlier initiatives that attracted major global brands to set up production units in the country. The Rs 62,500 crore allocation is among the largest incentives announced for the sector, reflecting the government's focus on electronics manufacturing as a key growth area. The scheme is also aligned with India's goal of increasing exports and creating jobs in the technology manufacturing space, according to economictimes.indiatimes.com.
The Cabinet's approval sets the stage for the formal rollout of the PLI scheme 2.0, with implementation details expected to be finalized soon. The initial PLI scheme helped India become the second-largest mobile phone manufacturer globally, and the new funding aims to build on that momentum, economictimes.indiatimes.com noted.