Govt Earns Rs 3.25 Lakh Cr in Taxes in Lieu of Rs 19,000 Cr Mobile PLI: Vaishnaw
28 Oct 2026 9:20 AM IST28 Oct 2026 9:20 AM IST
The minister's post came in response to a media opinion video claiming drawbacks of India's attempt to push electronics manufacturing through subsidies using public money compared to the ecosystem that exists in China
Union Railways Minister Ashwini Vaishnaw (PTI)
New Delhi: The government has collected a total of Rs 3.25 lakh crore from the mobile phone industry in lieu of the Rs 19,000 crore mobile production-linked incentive doled out to the segment, according to data shared by Union minister Ashwini Vaishnaw on Wednesday. The stats shared by the Union electronics and IT minister on X showed that the government paid Rs 19,000 crore in incentives under the scheme and in return collected Rs 25,000 crore as direct tax and Rs 3 lakh crore in the form of Goods and Services Tax (GST) from the beneficiaries.
"Electronics manufacturing employs 25 Lakh people; mobile manufacturing alone employs 12 Lakh. Cope harder!!" Vaishnaw said.
The minister's post came in response to a media opinion video claiming drawbacks of India's attempt to push electronics manufacturing through subsidies using public money compared to the ecosystem that exists in China.
According to the video, the import of components costs India more than it gains from exporting finished mobile phones that are made with subsidy support using taxpayers' money.
According to the official data shared by the government in March, India exported mobile phones worth Rs 2 lakh crore in fiscal year 2025 and mobile phone imports in the country had become almost negligible at around 0.02 per cent of the domestic demand in 2024-25 from 75 per cent 10 years ago.
The production of electronic goods has increased six times to around Rs 11.3 lakh crore in 2024-25 from about Rs 1.9 lakh crore in 2014-15, which includes a rise in mobile phone production to around Rs 5.5 lakh crore from about Rs 0.18 lakh crore during the same period.
The exports of electronic goods have increased eightfold to around Rs 3.3 lakh crore in 2024-25 from Rs 0.38 lakh crore 10 years ago.
The government has now rolled out the Mobile Phone Manufacturing Scheme (MPMS) with a total incentive of Rs 62,500 crore to boost local production of the devices. The scheme envisages developing Indian smartphones which will be designed and manufactured indigenously.
Vaishnaw has set an October 2028 timeline to meet the target for an Indian smartphone brand.
( Source : PTI )
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