Rs 25,000 crore in taxes, 12 lakh jobs: Vaishnaw backs mobile PLI scheme
Union Minister Ashwini Vaishnaw defended India's mobile manufacturing PLI scheme, noting it has generated Rs 25,000 crore in taxes and created 12 lakh jobs. The government is now launching a new phase of the scheme to further boost domestic production and supply chain integration.
Why it matters
The data provides insight into the economic impact of government industrial policies aimed at making India a global manufacturing hub.
NEW DELHI: India's mobile phone manufacturing sector has generated Rs 25,000 crore in direct tax collections, exceeding the Rs 19,000 crore paid out by the government as incentives under its production-linked incentive (PLI) scheme.Union minister for electronics and information technology Ashwini Vaishnaw shared the figures on Wednesday while dismissing news reports that questioned the effectiveness of India's mobile manufacturing model.He added that the scheme had also contributed Rs 3,000 crore in Goods and Services Tax (GST) collections.Highlighting the sector's employment contribution, Vaishnaw said, "Electronics manufacturing employs 25 Lakh people; mobile manufacturing alone employs 12 Lakh."The government is now looking to build on the sector's manufacturing base through a new scheme focused on expanding production, increasing the domestic sourcing of components and strengthening India's position in global supply chains.The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) in July, allocating Rs 62,500 crore to the programme.
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