India's Booming Mobile Manufacturing: Export Surges, Despite Job Challenges
The production-linked incentive scheme has significantly boosted India's domestic mobile manufacturing, surpassing investment and production targets. Exports have dramatically increased, but job creation has fallen short. The government has initiated further measures to reinforce the electronics ecosystem, inviting substantial investments and fostering global partnerships.
- Country:
- India
The Indian government's production-linked incentive scheme, aimed at enhancing domestic mobile phone manufacturing, has exceeded its investment and production targets significantly. Parliament learned on Wednesday that investments reached Rs 17,519 crore, more than double the target, while total production exceeded expectations by 36% at Rs 8.12 lakh crore.
Minister of State for Electronics and IT, Jitin Prasada, presented data in Lok Sabha revealing that smartphones worth Rs 2.62 lakh crore were exported in 2025, strengthening India's position as a net exporter of mobile phones. However, while the scheme excelled in boosting exports, job creation targets remained unmet, hitting 1.85 lakh jobs, 8% short of the government’s 2 lakh jobs goal.
To address this, additional programs like the Electronics Components Manufacturing Scheme (ECMS) and the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) have been rolled out. These initiatives aim at deepening the electronics supply chain and have already gained substantial investment commitments and initiated numerous technology partnerships with international enterprises.
Google News