Tax collections from smartphone sector far outweighs PLI payouts: Minister
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The government collected ₹3.25 lakh crore in taxes from the smartphone sector by FY26, while paying ₹19,000 crore in PLI incentives.
- ✓Minister Ashwini Vaishnaw said the sector now employs 2.5 million people.
- ✓Mobile exports grew significantly to ₹2.59 lakh crore in FY2025-26, making India the world’s second-largest mobile phone manufacturer.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Financial Express
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The government collected ₹3.25 lakh crore in taxes from the smartphone sector by FY26, with ₹19,000 crore paid as incentives under the PLI scheme, boosting domestic manufacturing and mobile exports.
In a post on X, Vaishnaw said the government had collected ₹25,000 crore in direct taxes and ₹3 lakh crore in goods and services tax (GST) from the sector in the five years. He added that electronics manufacturing employs 2.5 million people, of which 1.2 million work in mobile manufacturing.
The post responded to a video on X that was critical of the country's push to build electronics manufacturing with taxpayer subsidies, contrasting it with China's ecosystem. The video argued that India spends more on imported components than it earns from exporting the subsidised finished phones.
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