India Prepares Major Push for Mobile Manufacturing with PLI 2.0 Scheme
The Indian government is gearing up to launch a significant second phase of the Production-Linked Incentive (PLI) scheme specifically for mobile phones, with an ambitious timeline set for May implementation. According to sources cited by PTI, this new initiative will carry a substantial financial outlay exceeding $5 billion, which translates to approximately Rs 46,000 crore in Indian currency.
Focus on Export Acceleration
The proposed PLI 2.0 scheme is currently in advanced discussions within government circles, with a clear strategic emphasis on dramatically accelerating mobile phone exports from India. "The PLI 2.0 for mobile phones is in the works with a focus on boosting exports. It should be in place by May. The outlay is expected to be over USD 5 billion," revealed a government source familiar with the development.
Another source provided additional context about the administrative process, noting that the Ministry of Electronics and IT is in discussions with the finance minister, after which the comprehensive proposal will be presented to the cabinet for final approval. The explicit target for this new scheme is nothing short of ambitious: doubling mobile phone exports from India, though officials acknowledge that achieving this goal will depend significantly on the final budgetary allocation and scheme design.
Building on Previous Success
This new initiative follows the highly successful Scheme for Large Scale Electronics Manufacturing (LSEM), commonly known as the PLI for mobile phones, which was launched in 2020 with an initial outlay of Rs 40,995 crore (approximately $5.7 billion at that time). The original scheme was specifically designed to boost domestic mobile manufacturing capabilities and has delivered impressive results in export growth.
The data speaks volumes about the program's effectiveness: smartphones worth Rs 2.62 lakh crore (around $28 billion) were exported in 2025 alone, with Apple emerging as a particularly significant contributor to this export surge. When looking at cumulative performance, total exports under the scheme until February 2026 have crossed the remarkable threshold of Rs 6.2 lakh crore, which represents a substantial 27% exceeding of the original target of Rs 4.87 lakh crore.
Areas for Improvement
While export performance has been stellar, the scheme has shown some limitations in other areas. According to the PTI report, job creation under the PLI scheme has been slightly below expectations, with approximately 1.85 lakh jobs generated compared to the initial target of 2 lakh jobs. This indicates that while the program has been highly effective at stimulating manufacturing output and exports, its employment generation impact has been somewhat more modest than originally projected.
The impending PLI 2.0 scheme represents a strategic continuation of India's push to establish itself as a global manufacturing hub for electronics, particularly mobile phones. By doubling down on export-focused incentives with an even larger financial commitment, the government aims to build upon the solid foundation established by the initial PLI program while addressing areas that require additional focus and improvement.
