The country is gearing up to introduce fresh incentives to the mobile manufacturing industry. This comes as the existing flagship incentive scheme is set to conclude later this month. This is a big boost for industry majors such as Apple and Samsung. The move is timely, as the country aims to retain its edge over competitors in the US market following a ruling that reduced trade barriers for China. To counter this, New Delhi plans to link these new financial rewards directly to exports, encouraging companies to manufacture their most advanced devices in India for the global market.
The impact of previous support has already been massive. In the past decade, mobile production in India has increased 28-fold, with total production of nearly $60 billion in the 2024-25 fiscal year. Mobile phones have become the leading export from India, with exports totalling $21.7 billion in 2025 alone. This has helped Apple shift its focus from manufacturing low-end products in India to manufacturing its latest and most expensive flagship iPhones in India.
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This new model is likely to be implemented from April 2026 and is an integral part of Indian Prime Minister Narendra Modi’s vision of making India’s electronic sector a $500 billion industry by 2030. India is fine-tuning its “Production Linked Incentive” model to compete with China in manufacturing capabilities and sustain the growth trajectory of its high-tech sector. While the Ministry of Electronics is still finalising the details through industry consultations, the focus remains clear: making India a globally competitive alternative to Chinese factories.
