Mobile PLI scheme generated Rs 25,000 crore in direct taxes, employs 12 lakh people: Vaishnaw

In a post on X on Wednesday, Vaishnaw said the government had paid Rs 19,000 crore in incentives under the mobile PLI scheme, while direct tax collections stood at Rs 25,000 crore and Goods and Services Tax (GST) collections at Rs 3,000 crore.

"Electronics manufacturing employs 25 Lakh people; mobile manufacturing alone employs 12 Lakh," the minister said.

His remarks came as he refuted a news report questioning the effectiveness of India's mobile manufacturing model and the role of government incentives in the sector.

The figures shared by the minister come as the government seeks to expand domestic mobile phone manufacturing, increase local sourcing of components and strengthen India's position in global supply chains.

In July, the Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore. The scheme, which will run from FY 2026-27 to FY 2030-31, aims to scale up production, deepen domestic value addition, strengthen supply chains and improve global competitiveness.

The scheme provides incentives ranging from 2.25 per cent to 5 per cent for eligible mobile phone sales, with an additional incentive of up to 1.5 per cent linked to domestic sourcing of key components and sub-assemblies. It also provides support for Indian mobile brands, including incentives linked to design and research and development.

According to the Ministry of Electronics and Information Technology, cumulative mobile phone production during the scheme's tenure is expected to reach approximately Rs 39 lakh crore, with a significant increase in exports. The scheme is also expected to generate around 60,000 direct jobs.

The new scheme follows the end of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing on March 31, 2026, as the government looks to sustain manufacturing growth while encouraging deeper domestic sourcing and Indian-owned brands. (ANI)