India Plans Major Push for Smartphone Exports with New PLI 2.0 Scheme
Government prepares ambitious incentive program worth over 46000 crore rupees to boost mobile exports double output strengthen manufacturing ecosystem and attract global players amid rising demand and shifting supply chains
India is preparing to roll out a fresh incentive program aimed at significantly boosting smartphone exports, signaling a renewed focus on strengthening its position in the global electronics manufacturing race. The proposed Production Linked Incentive scheme, widely referred to as PLI 2.0, is expected to be introduced as early as May with an outlay exceeding 46000 crore rupees.
The new plan builds on the earlier initiative launched in 2020, which primarily focused on increasing domestic manufacturing. That program helped India emerge as a key production hub, but the upcoming version shifts attention toward exports, reflecting the country’s growing ambition to compete globally.
Officials familiar with the development indicate that discussions are ongoing between the Ministry of Electronics and Information Technology and the finance ministry. Once finalized, the proposal will be placed before the cabinet for approval. The core objective is clear to double smartphone exports in the coming years, although the final scale of benefits will depend on budget allocation.
Recent data highlights the rapid progress already made under the earlier scheme. In 2025 alone, India exported smartphones worth 2.62 lakh crore rupees, with major global brands playing a central role in driving this growth. By February 2026, cumulative exports under the scheme had crossed 6.2 lakh crore rupees, surpassing initial targets by a significant margin.
However, not all targets have been fully met. Job creation under the scheme reached around 1.85 lakh, slightly below the government’s expectation of 2 lakh. This gap is likely to be addressed in the upcoming policy, with a sharper focus on employment generation alongside export growth.
Industry analysts believe that global demand patterns and supply chain diversification are working in India’s favor. A recent market report also noted a shift in global smartphone dynamics, with premium brands gaining stronger traction. One company in particular saw notable growth in the first quarter, driven by high demand for its latest devices and a robust supply chain strategy.
Despite this, competition remains intense. Other major brands have experienced fluctuations in market share due to rising component costs and shifting consumer demand. While some companies reported declines, emerging and niche players have shown steady growth, though their overall volumes remain relatively small.
The government’s upcoming move is seen as a strategic step to capitalize on these global trends. By offering targeted incentives, policymakers aim to attract more investment, scale up production, and position India as a leading export hub for smartphones.
If executed effectively, PLI 2.0 could not only boost exports but also strengthen the broader electronics ecosystem, creating jobs and reinforcing India’s role in the global supply chain.
