India's PLI 2.0: Rs 62.5K Crore Boost for Mobile Makers

India's government has launched the Mobile Phone Manufacturing Scheme, or PLI 2.0, allocating ₹62,500 crore from FY27 to FY31. This initiative focuses on increasing incremental sales, exports, and domestic value addition in the mobile manufacturing sector. The scheme provides differentiated incentives, with TS1 for manufacturing offering 2.25% to 5%, and TS2 for Indian brands including an additional 3% for domestic R&D.

Dixon Technologies, a major EMS player, reported ₹14,179 crores in revenue for its Mobile & Other EMS Division in Q1 FY27. Despite margin compression due to scheme closure and rising component prices, Dixon maintained volumes and gained market share, manufacturing 75 lakh smartphone units. The company anticipates strong growth in Q2 FY27, expecting around 1.6 crore units for H1 FY27 and 3.2 crore for the full year, excluding new Vivo volumes.

Amber Enterprises has entered the mobile sector through a collaboration with Oppo Mobiles, covering Oppo, OnePlus, and Realme. This partnership is structured to be asset-light, with trial production starting in Q4 FY27 and commercial production in Q1 FY28. Amber projects manufacturing approximately 80 lakh units in FY28, aiming to double this by FY29 and progressively capture higher-margin component business, targeting 35-40% local value addition within six years.