The government may offer tariff support and new incentives under the upcoming PLI 2.0 scheme, as this will help companies manage rising global costs and remain competitive in export markets.
PLI Scheme 2.0 aims to boost India smartphone manufacturing growth |Image source: AI Generated/Representational|
PLI scheme 2.0: The central government is discussing a production-linked incentive (PLI) scheme 2.0 for smartphone manufacturing with industry companies, with an existing smartphone PLI scheme set to expire in March. The government plans to start the new phase from April 2026.
The new scheme plans to maintain the success of the current PLI scheme and increase smartphone production and exports in the country.
Focus on manufacturing and exports
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The government may offer tariff support and new incentives under the upcoming PLI scheme 2.0, as this will help companies manage rising global costs and remain competitive in export markets.
Due to the ongoing global tariff changes and rising production costs, industry companies have requested support from the government.
The new plan aims to strengthen India’s position in global electronics manufacturing.
Companies benefiting from the Scheme
Several global and Indian companies have benefited from the current smartphone PLI scheme, including:
Apple
Samsung Electronics
Dixon Technologies
Under the scheme, these companies have grown their production activities in India.
The new scheme is expected to launch in April 2026
The new plan seeks to increase the manufacturing of mobile phones and export products
For manufacturing sectors, it will seem like a well-timed bonus to decrease any probable tariffs
The new scheme offers flexible requirements for costing and local requirements
The focus is to keep the current PLI scheme increased
Role of smartphones in India’s electronics goal
India has set a target of producing $500 billion worth of electronics by 2030, and the smartphone industry is expected to play a crucial role in achieving this target. Some global companies are shifting their supply chains out of China and looking for other countries to manufacture their products, which could benefit manufacturers in India. Additionally, the United States has imposed tariffs on Chinese products, which will create opportunities for India to increase its export activities.
About PLI scheme
The Production Linked Incentive (PLI) scheme is a government scheme launched in 2020 to promote manufacturing in India. The scheme offers financial benefits to companies based on the increase in sales of products manufactured in India. Objectives of the scheme are:
Increase manufacturing within the country
Lower dependence on imported goods
Boost exports to other countries
Create more job opportunities for the residents of the country
The new planned PLI Scheme 2.0 aims to continue the current progress and make India a stronger global manufacturing hub.
Frequently asked questions (FAQ)
What is the new PLI Scheme 2.0 about? The government has proposed a new program, PLI Scheme 2.0, to boost the manufacturing and export growth in India. When will the new PLI scheme be launched? The new PLI 2.0 scheme is expected to launch in April 2026. Why does the government plan to launch this scheme? The government plans to launch this scheme to maintain the growth of smartphone manufacturing and strengthen India’s position in global electronics production. Which companies have benefited from the current PLI scheme? Companies like Apple, Samsung Electronics, and Dixon Technologies have benefited. What support may companies receive under PLI 2.0? Companies may receive tariff reduction, incentives and flexible localisation rules. How does the scheme help India’s electronics industry? It will increase production and exports and will attract global manufacturers to India. What is India’s electronics production target? India has set a target of producing $500 billion worth of electronics by 2030, with smartphones playing a major role.
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