Smartphone PLI Scheme Generates Revenue 19 Times The Incentives Disbursed, Creates 3 Lakh Direct Jobs: Electronics Association

According to the India Cellular and Electronics Association (ICEA), the Production Linked Incentive (PLI) scheme for smartphone manufacturing has delivered impressive results, generating 19 times the value of its incentive disbursements between FY21 and FY24.

In its assessment, ICEA revealed that the smartphone industry contributed Rs 1.10 lakh crore to the government exchequer while producing goods worth Rs 12.55 lakh crore during the same period. The government, in turn, disbursed Rs 5,800 crore as incentives, implying a net revenue of Rs 1.04 lakh crore.

The report further highlighted that the industry paid Rs 480 billion in duties on mobile parts and components, with an additional Rs 620 billion collected through incremental Goods and Services Tax (GST).

The smartphone PLI scheme has also been a significant employment driver. Since its launch, it has created nearly 3 lakh direct jobs and 6 lakh indirect jobs, with a notable contribution to skilling women in mid-skilled, blue-collar roles. ICEA described the mobile phone industry as the largest source of employment for women in this sector.

The scheme initially included ten companies — five global and five Indian — with a financial outlay of Rs 40,951 crore, later revised to Rs 38,601 crore. However, the primary success has been driven by Apple’s contract manufacturers (Foxconn, the Tatas/Wistron, Pegatron) and Samsung, which have consistently met their targets and received incentives. Among Indian companies, only Dixon Technologies has achieved similar performance.

Between FY21 and FY24, smartphone exports under the PLI scheme reached a cumulative value of Rs 2,870 billion, elevating smartphones from the 23rd rank in FY19 to the third-largest exported individual commodity by the end of FY24. Notably, smartphones are now India’s largest exported product to the United States.

The report also noted that value addition in Indian smartphone manufacturing has increased from 12 per cent five years ago to nearly 20 per cent today. ICEA emphasized that this progress in value addition has outpaced similar stages of growth seen in China and Vietnam during their early electronics manufacturing expansion.

“We have exceeded all policy objectives — jobs, revenue, exports, FDI and value addition. We are hopeful that the upcoming budget will drive greater competitiveness, consistent with PM’s $500-billion production target by 2030,” said Pankaj Mohindroo, chairman of ICEA.

Also Read: India’s PDS Leakage Hits Rs 69,108 Crore, With 29 Per Cent Grains Missing Beneficiaries, Reveals ICRIER's Latest Study