India pushes for bigger electronics output

India’s electronics industry is asking New Delhi to extend and expand phone-manufacturing subsidies after the current mobile incentive program ended on March 31. (economictimes.indiatimes.com) The proposal, described by industry executives as a “Production-Linked Incentive 2.0” plan for 2026 to 2031, targets 30% to 35% of global mobile-phone production by fiscal 2031, up from about 15% now. It sets annual output goals of $110 billion to $130 billion and export goals of $55 billion to $70 billion. (economictimes.indiatimes.com) The pitch comes from the India Cellular and Electronics Association, whose chairman Pankaj Mohindroo told The Economic Times that India has “a strong foundation” but needs policy continuity to keep investment moving. The industry group said the existing incentive program was the main driver of the current manufacturing push. (economictimes.indiatimes.com) A production-linked incentive is a cash incentive tied to how much companies make and sell, rather than a grant paid upfront. India used that model to pull more phone assembly into the country, especially for export markets. (static.pib.gov.in) The industry is making this case after a sharp jump in shipments abroad. India’s smartphone exports rose 55% to $24.14 billion in fiscal 2025 from $15.57 billion in fiscal 2024, according to government data reported by multiple Indian outlets. (economictimes.indiatimes.com) India’s phone factories were already producing at scale before this new ask. The value of mobile devices made in India for domestic sales and exports reached about $49.16 billion in fiscal 2024, up 17% from a year earlier, according to India Cellular and Electronics Association estimates reported by Business Standard and IBEF. (business-standard.com) Industry forecasts behind the new plan also line up with outside estimates that India’s role in global phone manufacturing is still rising. Counterpoint Research said in June 2025 that India could account for 20% of global smartphone output in 2025, with growth led by export demand from Apple and Samsung. (counterpointresearch.com) New Delhi is also trying to move beyond final assembly into parts. The government approved a 229.19 billion rupee electronics-components incentive scheme in March 2025 to build local capacity in items such as batteries, displays, camera modules and printed circuit boards. (telecom.economictimes.indiatimes.com) That leaves the next decision with the government: whether to back a second phone-focused incentive cycle after the first one expired on March 31, and whether India wants to chase a much larger share of the global handset business by fiscal 2031. (economictimes.indiatimes.com)