Smartphone Makers Push For Extending PLI Incentives In India

Major mobile phone manufacturers are advocating for the continuation of India's Production-Linked Incentive (PLI) scheme beyond its 2026 expiration date, highlighting the scheme's potential to boost domestic innovation and design capabilities, says a report by Economic Times.

They highlighted the success of the  PLI programme while emphasising the need for further development. 

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The PLI 1.0 has achieved a large part of the objectives, but there is more work to be done, Sunil Vachani, outgoing president of Consumer Electronics and Appliances Manufacturers Association (CEAMA), an industry body representing consumer electronics, home appliances and mobile phone makers, was quoted as saying in the report. 

"We need to consolidate and gauge what we have made. And that's why we are requesting that we have another round of PLI. By that time, companies will have come in, and design will have started," he added.

Vachani, who also leads Dixon Technologies, notesd the shifting global landscape, particularly regarding US politics. He observed increased interest from international companies seeking alternative manufacturing bases to China, especially following recent political developments.

What Is PLI Scheme

Launched in 2020, the PLI programme has transformed India into a significant smartphone manufacturing centre. Extending the programme is vital for reaching the government's ambitious electronics production target of $500 billion by 2030, reports say.

Lava International's chief manufacturing officer, Sanjeev Agarwal, suggests that a renewed PLI programme should incorporate fresh objectives and additional benefits for companies increasing their local production. 

He anticipates the new policy will likely tie incentives to job creation and domestic value addition, similar to the IT hardware sector's approach.

The industry is also anticipating an upcoming components support package, which could complement the proposed PLI extension. Micromax Informatics cofounder Rahul Sharma believes extending the smartphone PLI would maintain industry momentum and strengthen India's position as a global manufacturing leader.