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From making iPhones to building the next Apple: Will India's Rs 62K-cr bet pay off? | The Local News
Smartphones became India’s top exported individual commodity in FY 2025-26. In 2020 when the Production Linked Incentive (PLI) Scheme was launched as a cornerstone of the ‘Atmanirbhar Bharat’ push, little did anyone know that smartphones would emerge as the poster boy of its success.
Mobile phones assembly and manufacturing is arguably the biggest success story of the PLI scheme and now India is looking to take the next big leap in this space. With the launch of the Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS), India is eyeing its homegrown smartphone brands - with every aspect from design, R&D to components and manufacturing taking place in the country.
In fact, Electronics minister Ashwini Vaishnaw has said that by mid-2027, India expects its first strong indigenous mobile brand. Bloomberg estimates from earlier this year suggest that Apple’s contract manufacturers now account for roughly three-fourths of India’s smartphone exports, playing a major role in the country’s emergence as one of the world’s fastest-growing hubs for handset exports.
India's Rs 62,500 crore mobile phone pushFor Prime Minister Narendra Modi, this shift represents a natural next stage for his government’s Make in India programme, and this is where the new scheme holds promise. The focus is now moving beyond import substitution and domestic assembly towards a deeper integration with global supply chains, with the broader aim of positioning India as a manufacturing hub capable of competing with China.
Will the MPMS push India to build its own global smartphone brands like Apple, Samsung and others? We explore the potential of the new scheme: What PLI scheme has achievedNumbers have a telling story: Smartphones became India’s top exported individual commodity in FY 2025-26 overtaking even petroleum, gems and jewellery.
They did not even feature in the top 100 exported commodities in 2014. 2% of phones used domestically made in India.
Experts see India’s PLI journey as transformational in establishing India as a global mobile phone manufacturing hub. Due to the PLI, India saw the rise of local players like Dixon, which was the top manufacturer in 2025 and was a recipient of the PLI benefits in the local manufacturers category.
What PLI scheme achieved for mobile phones manufacturingOn the other hand, it helped in significant export volume growth, at 27% CAGR between 2021-2025 driven by global giants Apple, Samsung and Motorola. On the manufacturing end, it was led by beneficiaries of the PLI scheme which included Foxconn, TATA, Samsung and Dixon.
What PLI achieved was to accelerate large scale electronics manufacturing investments and exports, helping India emerge as the world’s second-largest mobile phone manufacturer by volume. 2%.
“The impact is particularly evident in the post-PLI period. 5 lakh crore in FY 2024-25, reflecting the scale achieved through sustained investments and integration with global supply chains,” notes Saurabh Agarwal, Partner, EY India.
2 lakh crore in FY 2023-24 and further to approximately Rs 2 lakh crore in FY 2024-25, making smartphones India's largest export product category. What has been announced nowThe Mobile Phone Manufacturing Scheme is now the next step in India’s dream.
The scheme promises support for scaling up of mobile phone production, with a particular focus on domestic value addition, further strengthening of supply chains, and ultimately improving India’s global competitiveness. 25% to 5% on eligible sales.
There will be an additional incentive for sourcing components from domestic manufacturers. The government has estimated that the scheme will help take the cumulative mobile phone production to around Rs 39 lakh crore during its five year tenure.
What is Mobile Phone Manufacturing Scheme? Will this be the next transformative step?
Several things are coming together to aid the new dream, but execution will hold the key to the second phase of success. MPMS comes at a time when investments under the Electronics Components Manufacturing Scheme (ECMS) are beginning to materialise.
According to Saurabh Agarwal of EY India, many of the components and sub-assemblies covered under ECMS are also identified under MPMS for localisation-linked incentives. “In that sense, MPMS is not merely a mobile phone manufacturing scheme; it is also a demand-generation mechanism that can accelerate the commercialisation of investments being made under ECMS,” he says.
What makes MPMS different is its focus on domestic sourcing, in-house R&D, and capability building. “If the scheme succeeds in strengthening component manufacturing, encouraging innovation, and building local capabilities alongside assembly, it could help India evolve from an assembler of electronics to a true electronics powerhouse,” he says.
“India has made substantial progress in final assembly and exports, but needs to increase domestic value addition, localise components, develop semiconductor and component ecosystems, build stronger R&D and product-design capabilities,” he says. The Rs 62,500 crore layout under the MPMS is likely to be a big enabler in this transformation, particularly as it links incentives to domestic sourcing of key components.
From Made in India to Made by IndiaCan India make its own Apple, Samsung? So the big question is, will India be able to create its own world-class mobile phone brand like Apple, Samsung, or even Xiaomi?
The task is easier said than done, but scope remains, and it won’t happen overnight, feel experts. Sohrab Bararia of Grant Thornton Bharat tells TOI, “Building a global brand is about much more than incentives.
It takes years of innovation, product development, customer trust, marketing, and a strong ecosystem around the brand.” What MPMS does is create some of the building blocks needed for that journey.
Its focus on domestic sourcing, in-house R&D, and capability building is a step in the right direction. “Ultimately, success will depend on how the market responds.
“If Indian brands can deliver on those aspects while leveraging the support provided under MPMS, the scheme could well be the first step towards creating globally recognised Indian electronics champions,” he adds. Prachir Singh also thinks that creating an Indian Xiaomi, Samsung or Apple will be challenging.
MPMS will support the manufacturing ecosystem, but building globally competitive Indian brands will ultimately depend on private-sector execution, he says. “The biggest limitation of previous incentive programmes was that they were primarily focused on scaling manufacturing.
“MPMS is the first policy framework that directly targets these value drivers. India also enters this phase from a position of considerable strength.
The country has already built a world-class manufacturing ecosystem. A large domestic market, deep engineering talent, a mature digital ecosystem and a growing electronics supply chain provide many of the building blocks that successful global technology brands require,” he adds.
What makes the opportunity particularly compelling is that India is no longer trying to create domestic brands in the absence of a manufacturing ecosystem. Unlike a decade ago, Indian companies can now leverage an established supplier base, large-scale production capabilities and access to global markets.
MPMS seeks to build on this foundation by encouraging Indian firms to move beyond assembly and invest in product ownership, technology and innovation. So, will the scheme create the next Apple or Samsung overnight?
Probably not. But it can create the conditions for the emergence of globally recognised Indian brands over the next decade, experts say.
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