PLI Scheme For Mobile Manufacturing Has Driven Domestic Value Addition To 20 Per Cent Within 3 Years: DPIIT Secretary

The Production Linked Incentive (PLI) Scheme has led to major smartphone companies shifting their suppliers, including Foxconn, Wistron and Pegatron, to India and as a result, top high-end phones are being manufactured in the country, the Department for Promotion of Industry and Internal Trade (DPIIT) has said.

Addressing a press conference in New Delhi on Tuesday, DPIIT secretary Rajesh Kumar Singh added that India has achieved a value addition of 20 per cent in mobile manufacturing within three years, surpassing the progress of countries like Vietnam and China over longer periods.

“We have been able to increase the value addition in mobile manufacturing to 20 per cent within a period of three years whereas countries like Vietnam achieved 18 per cent value addition over 15 years and China achieved 49 per cent value addition in over 25 years. Seen in this perspective, it is a big achievement," Singh said.

Singh added that the PLI scheme for Large-Scale Electronics Manufacturing (LSEM) along with existing Phased Manufacturing Program (PMP) has led to increased value addition of 23 per cent and 20 per cent in the electronics sector and in smartphone manufacturing, respectively, from negligible in 2014-15.

Of the $101 billion total electronics production in FY2022-23, smartphones constituted $44 Billion including $11.1 billion as exports.