India Boosts Mobile Value Addition Target to 55%

India's upcoming Production-Linked Incentive (PLI) scheme for mobile phones is set to target a domestic value addition of over 55%. Officials indicate the finalized PLI 2.0 will integrate with the existing ₹40,000 crore electronic component manufacturing scheme (ECMS), prioritizing the domestic sourcing of vital components. This strategic revision addresses concerns over import dependency, even as the initial PLI scheme has successfully positioned India as a major hub for smartphone assembly and exports.

The Ministry of Electronics and Information Technology (MeitY) is refining the PLI 2.0 based on feedback from the finance ministry's Expenditure Finance Committee. The committee urged for more robust provisions to encourage deeper value addition and better integration with the local component supply chain. The initial PLI scheme, launched in April 2020 with a ₹40,995 crore outlay, aimed to raise domestic value addition for mobile phones to 35-40%.

Officials anticipate that companies sourcing critical components like Li-ion batteries, camera modules, and display assemblies locally will receive additional incentives. The commencement of production at 75 manufacturing facilities approved under ECMS later this year is expected to significantly localize these components. This initiative is part of the government's broader strategy to strengthen domestic manufacturing and decrease reliance on imports in key electronics segments.