{"id":19178,"date":"2026-10-28T01:08:02","date_gmt":"2026-10-28T07:38:02","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=19178"},"modified":"2026-10-28T01:08:03","modified_gmt":"2026-10-28T07:38:03","slug":"what-the-government-says-india-earned-from-mobile-phone-incentives","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/what-the-government-says-india-earned-from-mobile-phone-incentives\/","title":{"rendered":"What the Government Says India Earned From Mobile Phone Incentives"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/what-the-government-says-india-earned-from-mobile-phone-incentives\/#How_Do_Tax_Collections_Compare_With_Incentive_Payouts\" >How Do Tax Collections Compare With Incentive Payouts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/what-the-government-says-india-earned-from-mobile-phone-incentives\/#How_Many_Jobs_Has_Phone_Assembly_Created\" >How Many Jobs Has Phone Assembly Created?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/what-the-government-says-india-earned-from-mobile-phone-incentives\/#What_Does_the_%E2%82%B962500_Crore_MPMS_Aim_to_Achieve\" >What Does the \u20b962,500 Crore MPMS Aim to Achieve?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/what-the-government-says-india-earned-from-mobile-phone-incentives\/#How_Are_MPMS_Incentives_Structured\" >How Are MPMS Incentives Structured?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/what-the-government-says-india-earned-from-mobile-phone-incentives\/#How_Is_MPMS_Different_From_the_Earlier_Electronics_PLI\" >How Is MPMS Different From the Earlier Electronics PLI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/what-the-government-says-india-earned-from-mobile-phone-incentives\/#Final_Outlook\" >Final Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<nav style=\"--separator: &quot;\/&quot;\" class=\"wp-block-breadcrumbs\" aria-label=\"Breadcrumbs\"><ol><li><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/li><li><a href=\"https:\/\/shoonya.com\/blog\/latest-news\/\">News<\/a><\/li><li><span aria-current=\"page\">What the Government Says India Earned From Mobile Phone Incentives<\/span><\/li><\/ol><\/nav>\n\n\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin=\"\">\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Figtree:wght@300;400;500;600;700;800&#038;family=Bricolage+Grotesque:wght@700;800&#038;display=swap\" rel=\"stylesheet\">\n<style>\n  :root{\n    --copper:#EFA145; --copper-deep:#D17800; --steel:#424242;\n    --forest:#082F25; --forest-2:#0C3D30; --fresh:#6CE890; --green:#45D965;\n    --mint:#EEFFF2; --mint-2:#F6FFF9; --line:#DDEBE3; --line-soft:#E8F3EC;\n    --red:#C11414; --ink:#2B342F; --grey:#5F6B65; --maxw:820px;\n  }\n  *{box-sizing:border-box;}\n  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rgba(239,161,69,0.18);}\n  .faq-item[open]{border-color:var(--copper);box-shadow:0 2px 10px rgba(239,161,69,0.18);}\n  .faq-q{list-style:none;cursor:pointer;display:flex;align-items:center;justify-content:space-between;gap:16px;padding:17px 20px;font-weight:700;color:var(--forest);font-size:16px;}\n  .faq-q::-webkit-details-marker{display:none;}\n  .faq-icon{flex:0 0 auto;width:26px;height:26px;border-radius:50%;background:var(--copper);color:#fff;display:flex;align-items:center;justify-content:center;font-size:16px;font-weight:800;line-height:1;transition:transform .2s ease, background .2s ease;}\n  .faq-item[open] .faq-icon{background:var(--forest);transform:rotate(45deg);}\n  .faq-a{margin:0;padding:0 20px 18px;color:#33413B;font-size:15.5px;line-height:1.6;}\n  .pattern-img{margin:18px 0 22px;border-radius:14px;overflow:hidden;border:1px solid var(--line);background:var(--mint-2);}\n  .pattern-img img{width:100%;height:auto;display:block;}\n  .pattern-img figcaption{padding:10px 16px;font-size:13px;color:var(--grey);text-align:center;border-top:1px solid var(--line);}\n  .video-wrap{position:relative;padding-bottom:56.25%;height:0;overflow:hidden;border-radius:14px;margin:6px 0 22px;border:1px solid var(--line);}\n  .video-wrap iframe{position:absolute;top:0;left:0;width:100%;height:100%;border:0;}\n  @media (max-width:640px){ body{font-size:16.5px;} .masthead{padding:32px 24px 28px;} .body{padding:28px 24px 34px;} h2{margin-top:36px;} table{font-size:14px;} }\n  .entry-title,.post-title,.single-post h1,h1.entry-title{color:#000!important;}\n<\/style>\n\n<div class=\"body\">\n  <p>On Wednesday, Union IT Minister Ashwini Vaishnaw responded on X to criticism of India&#8217;s mobile manufacturing model and the use of government incentives in the sector. He said the mobile production-linked incentive (PLI) scheme has brought in more direct tax than the government paid out in incentives. He also pointed to job creation as a key result.<\/p>\n\n  <h2><span class=\"ez-toc-section\" id=\"How_Do_Tax_Collections_Compare_With_Incentive_Payouts\"><\/span>How Do Tax Collections Compare With Incentive Payouts?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <div class=\"tbl-scroll\">\n    <table>\n      <thead>\n        <tr>\n          <th>Metric<\/th>\n          <th>Figure<\/th>\n        <\/tr>\n      <\/thead>\n      <tbody>\n        <tr><td>Incentives paid<\/td><td><span class=\"num\">\u20b919,000 crore<\/span><\/td><\/tr>\n        <tr class=\"total\"><td>Direct tax collections<\/td><td><span class=\"num\">\u20b925,000 crore<\/span><\/td><\/tr>\n        <tr><td>GST collections<\/td><td><span class=\"num\">\u20b93,000 crore<\/span><\/td><\/tr>\n      <\/tbody>\n    <\/table>\n  <\/div>\n\n  <h2><span class=\"ez-toc-section\" id=\"How_Many_Jobs_Has_Phone_Assembly_Created\"><\/span>How Many Jobs Has Phone Assembly Created?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <p>According to the minister, electronics manufacturing employs 25 lakh people in India. Mobile phone production accounts for 12 lakh of these jobs, making it the largest source of employment within the wider electronics sector.<\/p>\n\n  <h2><span class=\"ez-toc-section\" id=\"What_Does_the_%E2%82%B962500_Crore_MPMS_Aim_to_Achieve\"><\/span>What Does the \u20b962,500 Crore MPMS Aim to Achieve?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <p>The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) in July. It will run from FY27 to FY31. According to the Ministry of Electronics and Information Technology, its goals are to:<\/p>\n  <ul class=\"doc\">\n    <li>Increase mobile phone production<\/li>\n    <li>Raise domestic value addition<\/li>\n    <li>Strengthen supply chains<\/li>\n    <li>Improve global competitiveness<\/li>\n    <li>Support Indian brands through incentives linked to design and R&amp;D<\/li>\n  <\/ul>\n\n  <h2><span class=\"ez-toc-section\" id=\"How_Are_MPMS_Incentives_Structured\"><\/span>How Are MPMS Incentives Structured?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <div class=\"tbl-scroll\">\n    <table>\n      <thead>\n        <tr>\n          <th>Component<\/th>\n          <th>Detail<\/th>\n        <\/tr>\n      <\/thead>\n      <tbody>\n        <tr><td>Base incentive<\/td><td><span class=\"num\">2.25% to 5%<\/span> on eligible mobile phone sales<\/td><\/tr>\n        <tr><td>Additional incentive<\/td><td>Up to <span class=\"num\">1.5%<\/span>, linked to domestic sourcing of key components and sub-assemblies<\/td><\/tr>\n        <tr><td>Expected cumulative production<\/td><td>About <span class=\"num\">\u20b939 lakh crore<\/span><\/td><\/tr>\n        <tr><td>Expected direct jobs<\/td><td>Around <span class=\"num\">60,000<\/span><\/td><\/tr>\n      <\/tbody>\n    <\/table>\n  <\/div>\n\n  <h2><span class=\"ez-toc-section\" id=\"How_Is_MPMS_Different_From_the_Earlier_Electronics_PLI\"><\/span>How Is MPMS Different From the Earlier Electronics PLI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <p>The PLI Scheme for large-scale electronics manufacturing ended on March 31, 2026. MPMS keeps government support for phone manufacturing going, but its focus is different:<\/p>\n  <ul class=\"doc\">\n    <li>More attention to local sourcing of components, not only final assembly<\/li>\n    <li>Development of a domestic component ecosystem<\/li>\n    <li>Support for brands owned by Indian companies<\/li>\n    <li>Building design and R&amp;D capabilities within India<\/li>\n  <\/ul>\n\n  <h2><span class=\"ez-toc-section\" id=\"Final_Outlook\"><\/span>Final Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n  <div class=\"outlook\">\n    <p>The extra incentive tied to sourcing will be the main measure of whether MPMS increases domestic value addition beyond what the earlier scheme achieved. Production during the scheme period will show how close output gets to the ministry&#8217;s estimate. Growth in Indian brands and component suppliers will show how far supply chains are being built locally.<\/p>\n  <\/div>\n\n  <div class=\"disclaimer\">\n    <strong>Disclaimer:<\/strong> This content is for education and awareness purpose only and should not be considered investment advice or a recommendation. Investments in securities markets are subject to market risks. Read all the related documents carefully before investing.\n  <\/div>\n\n  <div class=\"source\">\n    <strong>Source:<\/strong> Economic Times\n  <\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Wednesday, Union IT Minister Ashwini Vaishnaw responded on X to criticism of India&#8217;s mobile manufacturing model and the use of government incentives in the sector. He said the mobile production-linked incentive (PLI) scheme has brought in more direct tax than the government paid out in incentives. He also pointed to job creation as a &hellip; <a href=\"https:\/\/shoonya.com\/blog\/what-the-government-says-india-earned-from-mobile-phone-incentives\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What the Government Says India Earned From Mobile Phone Incentives&#8221;<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":19180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1082],"tags":[10845],"class_list":["post-19178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-mobile-pli-scheme"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mobile PLI Scheme: \u20b919,000 Crore Payout Versus Taxes<\/title>\n<meta name=\"description\" content=\"Ashwini Vaishnaw links 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