India moving beyond phone assembly to components and materials, says Vaishnaw

Union Electronics and IT Minister Ashwini Vaishnaw said on 25 September 2026 that India's smartphone industry is moving deeper into the supply chain, from final assembly to making the parts and materials that go inside phones.

What is now being made in India

In a social media post, the minister listed components and materials being produced locally, including:

• Lithium-ion battery cells and battery materials such as synthetic graphite (used in anodes), electrolyte additives and acetylene black
• Cameras, displays and speakers
• Coils and enclosures
• Printed circuit boards (PCBs) and connectors

He highlighted a battery-cell facility in Manesar, Haryana, with a total investment of about Rs 3,000 crore.

Where India stands

The policy behind it

In July 2026, the Union Cabinet approved the Mobile Phone Manufacturing Scheme with an outlay of Rs 62,500 crore for five years, FY27 to FY31. It follows the 2020 production-linked incentive scheme for phones.

• Incentives of 2.25% to 5% on eligible sales of phones made in India
• An extra incentive of up to 1.5% for firms that source key components and sub-assemblies locally
• Government targets include cumulative production of about Rs 39 lakh crore, exports of Rs 15 lakh crore and around 60,000 direct jobs

Why it matters

Assembly adds limited value. Making batteries, displays and boards at home keeps more of a phone's value in India, creates skilled jobs and makes the supply chain less exposed to imports.