Having not mentioned it anywhere during the FM Budget speech, the government is finally coming through and is expected to roll out the second plhase of the production-linked incentive (PLI) scheme for mobile phones, commonly known as Mobile PLI 2.0 by May this year, according to several media reports.
The outlay for Mobile PLI 2.0 could be around $5 billion or Rs 46,000 crore, as the government looks to boost the domestic mobile phone exports and further strengthen India's position in the global electronics manufacturing race.
This comes on the back of expiry of Scheme for Large Scale Electronics Manufacturing (LSEM) in March 2026. The first phase of this scheme had an outlay of just over Rs 40,000 crore. Industry players have been seeking an extension or a successor for this scheme and that is where Mobile PLI 2.0 comes into the fray.
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Why It Matters For Dixon Tech
The company that is most reliant on the Mobile PLI scheme is Dixon Technologies Ltd. The EMS giant is seen as a big beneficiary of the proposed scheme, as the company earns more than 80% of its revenue from mobile phone manfacturing.
Quite naturally, the company is highly sensitive to policy incentives in the sector. The PLI framework, after all, provides Dixon Tech with an estimated margin benefit of 100-150 basis points, according to industry assessments.
Dixon Tech typically passes on part of the incentive benefit to customers, which helps the company improve its competitive edge while also supporting its overall profitability.
Analysts believe the continuation of the PLI benefits in the mobile phone manufacturing space could aid volume growth, capacity utilisation and customer diversification for Dixon Tech.
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