The Scheme for Large Scale Electronics Manufacturing (LSEM) was launched in 2020 with the aim to boost domestic manufacturing of mobile phones in the country with an outlay of Rs 40,995 crore, or about USD 5.7 billion based on exchange rate at that time.
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LSEM was commonly known as production-linked incentive scheme (PLI) for mobile phones.
“The PLI 2.0 for mobile phones is in the works with a focus on boosting exports. It should be in place by May. The outlay is expected to be over USD 5 billion,” a source on condition of anonymity told PTI.
Another source said the Ministry of Electronics and IT is in discussion with the finance minister for the PLI after which it will be placed before cabinet for final approval.
“Target is to double export of mobile phones from India. However, a lot of things are dependent on the outlay,” the source said.According to official data, smartphones worth Rs 2.62 lakh crore, about USD 28 billion, were exported in 2025 with Apple emerging as the poster boy of the scheme.
Total exports under the scheme till February 2026 have crossed 6.2 lakh crore, which is 27 per cent more than the target of Rs 4.87 lakh crore set-up under the scheme.
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The scheme, however, generated 1.85 lakh jobs which is 8 per cent less than the target of 2 lakh jobs envisaged by the government under the scheme.