The Union Cabinet on Wednesday, July 15, approved a mobile phone manufacturing scheme with an outlay of ?62,500 crore to strengthen India's electronics manufacturing ecosystem and promote domestic production.

The scheme will run for five years and includes incentives for developing Indian mobile phone brands, the government said.

According to the government, the scheme targets cumulative production worth ?39 lakh crore over its duration, with exports estimated at ?15 lakh crore.
The government's export target comes as electronic goods have emerged as India's third-largest export category, accounting for 11.8% of the country's total exports and recording a 22.6% year-on-year increase during April-June 2026.

The table below shows India's top export categories:

The government said the earlier Production Linked Incentive (PLI) Scheme 1.0 for mobile manufacturing exceeded its targets for investment and production. Mobile phones also emerged as India's single largest exported item in FY26.

The new scheme is expected to further accelerate domestic manufacturing, with the government highlighting total production of ?13.1 lakh crore and exports of ?4.2 lakh crore achieved under the existing mobile manufacturing ecosystem.

India's broader electronics manufacturing push also received a boost on Wednesday, with the Union Cabinet approving the ?1.27 lakh crore second phase of the India Semiconductor Mission (ISM), confirming CNBC-TV18's Newsbreak earlier in the day.

The approved outlay is significantly higher than the ?76,000 crore allocation under the first phase of the mission and will be implemented over the next 10-12 years, providing a longer policy roadmap for semiconductor investors and manufacturers. The move is expected to further strengthen India's electronics ecosystem and support the government's push to build a domestic semiconductor industry.

Union Minister for Electronics and Information Technology Ashwini Vaishnaw said incentives under the mobile manufacturing scheme will be focused towards boosting exports. He added that India has already achieved 24% domestic value addition in mobile manufacturing, while the highest level globally is around 38% in China. Design, he said, remains a key component of increasing domestic value addition.

Vaishnaw said the government is looking to notify both the India Semiconductor Mission 2.0 and the Mobile Manufacturing Scheme within around 20 days.