India’s Smartphone Revolution: Will 2026 Bring A New Wave Of Incentives?

India’s smartphone industry, which has rapidly scaled to become a global manufacturing hub, may soon see fresh government incentives. According to top officials, the Centre is weighing options to extend or redesign the existing mobile PLI scheme, worth Rs 40,995 crore, as it approaches closure in March 2026.

The move comes amid record smartphone exports and rising global competitiveness. Industry leaders argue that while India has achieved remarkable growth, thin margins and component gaps persist, making continued government support critical for sustaining momentum.

Key Highlights

• The government is considering extending or replacing the current mobile PLI scheme to maintain industry growth.
• India’s smartphone exports crossed ₹1 lakh crore in the first five months of FY 2025-26, a 55% jump year-on-year.
• India overtook China in Q2 2025 to become the top smartphone exporter to the United States.
• Manufacturing capacity has expanded from just 2 units in 2014 to over 300 units today.

Industry stakeholders emphasize the need for incentives to address component supply gaps and ensure competitiveness.
No final decision has been announced yet on the structure or size of the new incentives.

Sources: Moneycontrol, Press Information Bureau