Updated on March 06, 2025 01:44:53 PM
The Production Linked Incentive (PLI) Scheme for Large Scale Mobile and Component Manufacturing aims for developing India as a global hub for mobile manufacturing. To boost growth in both mobile phones and their key components, the PLI Scheme for Large Scale Mobile and Component Manufacturing offers incentives for meeting the surging demand for mobiles, both locally and globally. The PLI Scheme for Large Scale Mobile and Component Manufacturing is an overall plan of action to tap the mobile manufacturing sector of India and bring improvements like decrease in import dependence, increase in competitiveness research and development. The PLI Scheme for Large Scale Mobile and Component Manufacturing promotes technological development and innovation of the mobile production industry, providing domestic and international players with opportunities to build a more robust and sustainable position in the industry for India and establish itself as a global mobile manufacturing hub.
The Production Linked Incentive (PLI) Scheme for Large Scale Mobile and Component Manufacturing is launched for making India a manufacturing hub for mobile phones and components. The purpose of the PLI Scheme for Large Scale Mobile and Component Manufacturing is to increase manufacturing capability, import substitution, as well as export of mobile phones and their related parts. The PLI Scheme for Large Scale Mobile and Component Manufacturing aims at encouraging companies in the mobile sector financially for investing in the necessary technology, innovation as well as capital equipment needed for expansion of operations. The Government of India intends to foster the emergence of the domestic mobile manufacturing industry through the PLI Scheme for Large Scale Mobile and Component Manufacturing, thereby making India a significant player in the global mobile market.
Furthermore, PLI Scheme for Large Scale Mobile and Component Manufacturing aims to create ample employment opportunities, promote R&D activities, and encourage both the domestic and international investors, which will help the country build and sustain the place for the country into the world’s mobile supply chain and the growth of a new generation of robust electronics industry.
The Production Linked Incentive (PLI) Scheme for Large Scale Mobile and Component Manufacturing offers several key benefits to India's mobile manufacturing sector:
Listed below are the eligibility criteria for the PLI Scheme for Large Scale Mobile and Component Manufacturing that the manufacturers must fulfill.
An applicant is required to meet all the threshold conditions to be eligible for disbursement of the PLI Scheme for Large Scale Mobile and Component Manufacturing and the eligibility threshold criteria is tabulated below.
| Segment | Proposed Incentive Rate | Incremental Investment over Base Year | Incremental Sales of Manufactured Goods over Base Year |
|---|---|---|---|
| Mobile Phones (Invoice value of Rs 15,000 and above) | Year 1: 6% Year 2: 6% Year 3: 5% Year 4: 5% Year 5: 4% | Rs 1,000 Crore over 4 Years Cumulative Minimum (Crore): Year 1: 250 Year 2: 500 Year 3: 750 Year 4: 1,000 | Year 1: Rs 4,000 Crore Year 2: Rs 8,000 Crore Year 3: Rs 15,000 Crore Year 4: Rs 20,000 Crore Year 5: Rs 25,000 Crore |
| Mobile Phones (Domestic Companies) | Rs 200 Crore over 4 Years Cumulative Minimum (Crore): Year 1: 50 Year 2: 100 Year 3: 150 Year 4: 200 |
Year 1: Rs 500 Crore Year 2: Rs 1,000 Crore Year 3: Rs 2,000 Crore Year 4: Rs 3,500 Crore Year 5: Rs 5,000 Crore | |
| Specified Electronic Components | Rs 100 Crore over 4 Years Cumulative Minimum (Crore): Year 1: 25 Year 2: 50 Year 3: 75 Year 4: 100 |
Year 1: Rs 100 Crore Year 2: Rs 200 Crore Year 3: Rs 300 Crore Year 4: Rs 450 Crore Year 5: Rs 600 Crore |
Tabulated below is the list of specified electronic components that are eligible under the PLI Scheme for Large Scale Mobile and Component Manufacturing.
| S. No. | Description of Goods |
|---|---|
| 1 | SMT components |
| 2 | Discrete semiconductor devices including transistors, diodes, thyristors, etc. |
| 3 | Passive components including resistors, capacitors, etc. for electronic applications |
| 4 | Printed Circuit Boards (PCB), PCB laminates, prepregs, photopolymer films, PCB printing inks |
| 5 | Sensors, transducers, actuators, crystals for electronic applications |
| 6 | System in Package (SIP) |
| 7 | Micro / Nano-electronic components such as Micro Electromechanical Systems (MEMS) and Nano Electromechanical Systems (NEMS) |
| 8 | Assembly, Testing, Marking and Packaging (ATMP) units |
Listed below is the approval and disbursement process for the PLI Scheme for Large Scale Mobile and Component Manufacturing.
The Production Linked Incentive (PLI) Scheme for Large Scale Mobile and Component Manufacturing serves as a strategic initiative by the Government of India to position the country as a leading global player in mobile manufacturing. Through financial incentives for incremental investment and sales, the PLI Scheme for Large Scale Mobile and Component Manufacturing encourages innovation, enhances local manufacturing capabilities, and reduces reliance on imports. By fostering competitiveness and supporting R&D, the PLI Scheme for Large Scale Mobile and Component Manufacturing is expected to create a substantial number of direct and indirect job opportunities, attract domestic and international investments, and boost India’s export potential. Ultimately, the PLI Scheme for Large Scale Mobile and Component Manufacturing not only aims to strengthen the mobile manufacturing ecosystem in India but also paves the way for India to emerge as a major hub in the global electronics supply chain.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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The PLI Scheme for Large Scale Mobile and Component Manufacturing has the objective to make India a manufacturing powerhouse for mobile phones, manufacturing capacity enhancement, import substitution, export promotion and research, development and innovation in the mobile phone manufacturing & components.
The PLI Scheme for Large Scale Mobile and Component Manufacturing is intended to reward producers who have made incremental investments and sales. The applicants must be companies that are registered in India and the eligibility under the PLI for Large Scale Mobile and Component Manufacturing is to bar eligibility under any other scheme.
The primary incentive for the revenue above ₹15,000 for mobile phones is 6% in the first two years, 5% in the third and fourth years, and 4% in the fifth year. There are different rates for domestic companies and some specified electronic components under the PLI Scheme for Large Scale Mobile and Component Manufacturing.
Companies registered in India can submit applications for PLI Scheme for Large Scale Mobile and Component Manufacturing before the deadline. Once acknowledged, applications are evaluated thoroughly. Incentives are provided to companies who meet the set thresholds and pass claim reviews.
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