Govt working with industry for smartphone PLI 2.0, plans to indigenously design 30 chipsets for domestic, export needs: Ashwini Vaishnaw

ashwini vaishnaw it secretary s krishnan

The Indian government is working with the smartphone industry on the next phase of its production-linked incentive (PLI) scheme, Union IT and Electronics Minister Ashwini Vaishnaw said, adding that the 24 approved electronics component projects—along with upcoming ECMS 2.0 investments—will push local value addition in smartphones and key electronics to 35–40% over time.

The minister also reiterated the government’s plan to design and manufacture 30 strategic chipsets in India, forming the backbone of the country’s semiconductor ambitions.

“We expect significantly high local value addition. I think we’ll be reaching the 35–40% range by the time electronic components start getting fully manufactured,” Vaishnaw said in response to a Moneycontrol query during a media interaction.

He confirmed that the government is working closely with industry stakeholders on the contours of PLI 2.0 for smartphones. The current scheme—considered the most successful of India’s incentive programmes—ends this fiscal year. It has attracted major global manufacturers and helped position India as a leading smartphone production hub.

Monetcontrol on August 29 reported that Meity will soon start work on the second phase of the production-linked incentive (PLI) scheme for smartphones to sustain export momentum and strengthen the competitiveness of local players against rivals in China and Vietnam.

Industry players have been urging the Centre to extend the scheme to maintain export momentum and strengthen India’s competitiveness against manufacturing bases in China and Vietnam. Executives argue that continued support is crucial for India to achieve its $500-billion electronics output target by 2030.

While officials acknowledge the need for policy continuity, formal consultations for the new PLI framework have not yet begun.

Vaishnaw said India is on track to manufacture a substantial share of critical components domestically.

“As we go forward, we will practically be making a very large percentage of our requirement of components like PCBs, camera modules, and passive components… There will be some items where we will meet our needs 100% and also become global suppliers,” he said.

India’s electronics exports rose from $29.1 billion in FY24 to $38.6 billion in FY25, driven largely by strong smartphone shipments from Apple and Samsung, according to data from the India Cellular and Electronics Association (ICEA).

Expanding on India’s semiconductor roadmap, Vaishnaw said the government is progressing with its plan to design and manufacture 30 strategic chipsets to meet domestic and export needs.

“There are certain chips which are high value but low volume. There are other sets which are medium value, medium volume. Then there is a set of chips which are low value but very high volume,” he said. “We are looking at these three buckets… A team led by Principal Scientific Advisor Professor Sood has identified the first preliminary list. We are also working with other industry participants to further fine-tune that list and then take it forward.”