India has announced a major new industrial push aimed at strengthening its place in the global electronics supply chain. The government unveiled a five-year Mobile Phone Manufacturing Scheme worth ₹625 billion, designed to reward smartphone makers through sales-linked incentives and extra support for local sourcing.
The plan offers incentives of 2.25% to 5% on eligible sales, plus an additional 1.5% for companies that source key parts and sub-assemblies within India. Alongside this, New Delhi committed ₹1.28 trillion more to expand semiconductor manufacturing, widening support for chip equipment, materials, design and research.
India has already become an important production base for global smartphone brands. Apple, Samsung, Xiaomi, Oppo and Vivo all manufacture in the country, while Apple has steadily increased iPhone assembly through partners such as Foxconn and Tata Group. Today, roughly one in four iPhones is made in India, reflecting the country's growing role in high-tech manufacturing.
The new policy goes beyond assembly. Officials want to deepen local value creation by encouraging domestic design, research and component production. A further 3% incentive for product design and R&D is intended to help Indian brands grow stronger in the market.
Industry estimates suggest the program could support about ₹39 trillion in mobile-phone production through March 2031 and create around 60,000 direct jobs. Analysts say the initiative may also strengthen supplier networks, improve engineering capabilities, and make India a more attractive base for long-term electronics investment.
While China still leads global smartphone output, India's latest move signals a more ambitious strategy: building not only assembly capacity, but a fuller innovation ecosystem. If successful, it could reshape how and where the next generation of devices is designed and manufactured.
