Riding the PLI wave, India’s smartphone industry could contribute over ₹3 trillion in GST by FY26, boosting domestic manufacturing, exports, and the nation’s global tech standing.
India’s smartphone industry is reportedly set to contribute more than ₹3 trillion in Goods and Services Tax (GST) during the six-year period of the Production Linked Incentive (PLI) scheme.
According to the India Cellular and Electronics Association (ICEA), GST collections from the sector could surpass ₹3 trillion by the end of FY26. This follows an estimated ₹2.45 trillion paid during FY21–FY25, which included an incremental ₹818 billion after the GST rate on smartphones was raised from 12% to 18% in April 2020.
In the current financial year alone, the industry expects to contribute over ₹650 billion in GST, ICEA stated in a letter to Finance Minister Nirmala Sitharaman dated 8 October. The letter emphasised that the robust tax contribution reflects the PLI scheme’s success in accelerating domestic manufacturing and exports.
Smartphone production in India has surged more than twofold—from ₹2.1 trillion in FY20 to ₹5.45 trillion in FY25—while exports have jumped from ₹272.25 billion to over ₹2 trillion during the same period. The domestic market has also expanded from ₹2.14 trillion in FY21 to ₹3.4 trillion in FY25, with annual GST revenues rising from ₹384.75 billion to around ₹612 billion, marking a 158% increase.
ICEA noted that the GST collections demonstrated how the electronics manufacturing ecosystem was adding real value to India’s economy. It added that the sector was generating significant revenue for the exchequer while positioning India as the world’s second-largest manufacturer and third-largest exporter of mobile phones.
The industry’s performance has been driven by leading global and domestic firms, including Apple, Foxconn, Tata Electronics, Samsung, Oppo, vivo, Dixon, Lava, and Micromax. So far in FY26, exports have already exceeded ₹1.17 trillion, a record high.
Under the PLI scheme, companies could choose any five consecutive years between FY21 and FY26 to avail of incentives. Samsung opted for the first five years, while Apple’s contract manufacturers and several Indian firms selected FY21–FY26. The current PLI phase concludes in March 2026.
