Smartphone PLI: $1 billion given in 3 years, 5 companies got 98% of the funds, says report

The PLI scheme has been active in ramping up smartphone production in the country.

The government has disbursed close to $1 billion under the flagship  production-linked incentive (PLI) scheme for smartphone manufacturing between 2022-2025, The Indian Express has reported.

A total of Rs 8,700 crore was disbursed to 19 companies, of which five —  Foxconn (Rs 2,807.17 crore), Tata Electronics (Rs 2,067.51 crore), Pegatron (Rs 1,724.36 crore), Samsung (Rs 1,365.91 crore) and Padget Electronics (Rs 596 crore) — accounted for more than 98 percent of the disbursal amount, the report added.

Out of the five, Foxconn, Tata Electronics and Pegatron, the three contract manufacturers of Apple, received over 75 percent of the amount, the report added, citing data received by publication in response to an application under the Right to Information Act.

Moneycontrol couldn't independently verify the report.

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The PLI scheme has been active in ramping up smartphone production in the country.

At $13.1 billion during April-November period, handsets are now the second highest exported product from India.

In 2023-24, Foxconn,  Apple’s biggest contract manufacturer globally, received the highest subsidy disbursal of Rs 2,450 crore. In 2024-25, no incentive was issued to Foxconn, the report added.

According to the report, in 2024-25, Samsung received the highest subsidy of almost Rs 958 crore.

Before the introduction of PLI, smartphone exports totalled $1.6 billion in global shipments in FY19, with only $5 million designated for the US market.

The telecom PLI scheme has attracted Rs 3,400 crore in investment over three years.