{
  "id": 16860471,
  "title": "Vaishnaw counters criticism of mobile PLI plan",
  "url": "https://urgent.news/2026/10/28/vaishnaw-counters-criticism-of-mobile-pli-plan",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-28T06:02:04.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/new-updates/copying-chinas-manufacturing-model-may-not-pay-off-ashwini-vaishnaw-hits-back-with-cope-harder-remark-cites-rs-3-lakh-crore-pli-returns/articleshow/135252223.cms"
  },
  "original_language": "en",
  "account": "Union Electronics and IT Minister Ashwini Vaishnaw addressed criticisms of India's mobile manufacturing plan, countering concerns about the country's strategy with government data on tax revenue and job creation. In a statement on X, Vaishnaw highlighted the returns generated by the Production Linked Incentive (PLI) scheme for mobile manufacturing, revealing that the government had disbursed Rs 19,000 crore in incentives, while direct tax collections reached Rs 25,000 crore. Additionally, the sector contributed Rs 3 lakh crore in GST collections.\n\nVaishnaw emphasized that the manufacturing push has created employment opportunities, with electronics manufacturing now employing 25 lakh people in India, and mobile phone manufacturing alone accounting for 12 lakh jobs. These figures underscore the government's argument that incentives for manufacturers can yield economic benefits beyond the initial public expenditure.\n\nIndia has become an increasingly significant production hub for Apple and its partners, as companies seek to diversify their supply chains. The country has expanded its role in assembling iPhones for global markets, and electronics exports have grown substantially over the past decade. The government's incentive programs aim to attract manufacturers, stimulate investment, and create jobs in an industry traditionally dominated by production centers like China.\n\nHowever, the success of India's manufacturing efforts is not solely measured by the number of phones assembled. Critics have raised questions about the extent of value retention when key components are imported. While assembly generates employment and supports exports, producing more components locally could enhance India's share of the value generated by each device. This distinction is crucial as India seeks to evolve from a primarily assembly destination to a more comprehensive electronics manufacturing ecosystem.\n\nThe government is set to continue its push through the Mobile Phone Manufacturing Scheme (MPMS), approved by the Cabinet in July with a budget of Rs 62,500 crore for the period 2026-27 to 2030-31. The scheme aims to boost production, deepen domestic value addition, strengthen supply chains, and enhance India's competitiveness in global markets. Manufacturers can benefit from incentives ranging from 2.25% to 5% on eligible mobile phone sales, with an additional incentive of up to 1.5% for increased domestic sourcing of key components and sub-assemblies. The scheme also targets Indian mobile phone brands through incentives for design and research and development.\n\nAccording to the Ministry of Electronics and Information Technology, the scheme is projected to generate around Rs 39 lakh crore in mobile phone production and approximately 60,000 direct jobs during its tenure. The MPMS follows the conclusion of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing on March 31, 2026. The debate over India's manufacturing success will hinge not only on the number of phones produced but also on how much value is created within the country.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}