Govt Plans 5 Bn USD Mobile PLI 2.0 to Boost Exports Growth

The Indian government is preparing to introduce the second phase of its Production-Linked Incentive (PLI) scheme, with a proposed outlay of over $5 billion investment (around ₹46,000 crore). The move is aimed at strengthening India’s position as a global electronics manufacturing hub and significantly increasing smartphone exports from India.

Sources indicate that the new PLI 2.0 scheme is likely to be launched soon, possibly by May, after consultations between the Ministry of Electronics and IT and the finance ministry. The proposal is expected to be placed before the Union Cabinet for final approval.

The upcoming scheme will primarily focus on boosting exports, building on the success of the first phase. India’s mobile phone exports have already seen strong growth, reaching around ₹2.62 lakh crore (approximately $28 billion) in 2025. This growth has been driven by global manufacturers increasing their electronics manufacturing in India.

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The original PLI scheme, introduced in 2020, played a key role in expanding domestic manufacturing in India. It attracted major global players and helped India emerge as a key player in the global smartphone supply chain.

So far, cumulative exports under the scheme have crossed ₹6.2 lakh crore by early 2026, exceeding expectations. However, job creation has been slightly below target, with around 1.85 lakh jobs generated. The government now aims to boost job creation in manufacturing through the new phase.

Industry experts have been calling for a second phase to sustain growth and strengthen mobile manufacturing ecosystem and electronics supply chain India. The new version is expected to encourage higher value addition and investment.

With companies adopting the China Plus One strategy, India is becoming a preferred destination for production. The proposed scheme could also help increase India global market share in smartphones and accelerate export-led growth India in the coming years.