Mobile production scheme successful but laptop scheme delayed: NITI Aayog

According to a NITI Aayog report on Thursday, the government's Production Linked Incentive (PLI) scheme for mobile phone manufacturing has proven to be the most efficient among all PLI schemes, while the IT hardware scheme covering laptops, tablets, PCs, and servers has lost time. This report was prepared in collaboration with the Indian Institute of Management, Ahmedabad, reviewing 14 PLI schemes up to March 2026.

The progress made in the mobile phone sector is significant. According to a report by Hindustan Times, mobile phone exports have increased from ₹ 22,868 crore in FY21 to approximately ₹ 2 lakh crore in FY25, representing a nearly ninefold increase. During the same period, phone imports have decreased by 77%. The number of phone manufacturing factories has also increased from 2 to approximately 300. Almost all phones sold in India (99.2%) are now manufactured here.

The large-scale electronics scheme is one of only four sectors to receive an "on track" rating across four criteria—investment, production, jobs, and exports. This scheme has brought in an investment of ₹ 20,580 crore and production of ₹ 11.61 lakh crore, creating 1.69 lakh jobs. The government has paid out ₹ 19,091 crore in incentives, which is approximately 56% of the scheme's total expenditure of ₹ 34,193 crore. This amount is more than half of the total PLI paid across all 14 sectors.

However, the report also highlighted some weaknesses. India's growth has primarily relied on the assembly of imported displays, batteries, and circuit boards, as the scheme did not mandate companies to use local components. In the local phone segment, imports still far exceed exports, and most benefits have gone to major global manufacturers. The scheme for electronic components has made only "relatively moderate progress." Incentives in this sector peaked around 2022 and subsequently declined, with only one company receiving incentives. Production under this scheme decreased in 2025-26, although it remained above 50% of the target.

Regarding the IT hardware scheme, the report states that the scheme is still in its early stages. Its first iteration "did not achieve the intended results," as it provided an average incentive of only 2%, which was insufficient to bring global companies to India. Local content rules were also very strict because the industry lacked components such as circuit boards and memory chips. There was a major decline in production after 2022 when 13 out of 14 companies moved to the new iteration and mostly took a one-year break for setup. It improved in 2024-25 when 25 out of 27 approved companies commenced operations.

Under the IT hardware scheme, only four companies have received a total of ₹ 98 crore in incentives so far, which is just 0.57% of its ₹ 17,000 crore expenditure. By March 2026, this scheme has brought in an investment of ₹ 908 crore and production of ₹ 21,853 crore, creating 4,859 jobs. The scheme has received an "on track" rating for production and jobs, but only a "partial impact" rating for investment. Export data is not available.

The report also noted that due to discrepancies in import data and the IT Ministry's stance that production and exports are "market-driven," it has become difficult to determine how much this growth contributes to the scheme. The government has already replaced the phone scheme. The tenure of this scheme ended on March 31 this year, and the Cabinet approved a ₹ 62,500 crore mobile phone manufacturing scheme in July. The new scheme aims to increase the use of components made in India and create Indian phone brands.

NITI Aayog is the premier policy think tank of the Government of India, tasked with formulating strategies for the country's economic and social development.