Government invites new applications under the PLI scheme for medical device manufacturing

The discussion about iPhone production in India goes beyond simply manufacturing one type of phone; it tests the country's ability to scale up new factories, jobs, and exports with the support of government incentives. The central government provided financial support to mobile companies through the Production Linked Incentive (PLI) scheme to increase production volumes.

According to Electronics and IT Minister Ashwini Vaishnaw, the government has allocated ₹19,000 crore in incentives for mobile manufacturing. As a result, this sector has generated ₹25,000 crore in direct taxes and ₹3 lakh crore in GST collection. He also noted that 25 lakh people are employed in electronics manufacturing, of whom 12 lakh work directly in mobile manufacturing.

However, there is another side to this story: the question is whether India imports components for assembling phones or is gradually starting to produce the parts and technologies that constitute the true value of the device. This debate is important for understanding the progress of the 'Make in India' and 'Made in India' concepts.

PLI stands for Production Linked Incentive. Simply put, it is a program that provides financial incentives to eligible companies for increasing domestic production. The goal of this scheme is to help companies set up factories in India, increase output, invest capital, and make India a more attractive manufacturing hub compared to other countries.

For example, if a company manufactures mobile phones in India and meets the program's criteria, it can receive incentives according to established rules. This increases the economic benefit for the company when expanding production in India. The government expects that in return, investments will come in, jobs will be created, production will rise, and exports will be stimulated. Thus, the state does not directly cover the cost of every phone but encourages companies that increase production according to specific conditions.

A few years ago, most of India's mobile phone needs were met through imports. Now, the situation has changed significantly. According to government data, in 2014–15, about 75 percent of the country's demand for mobile phones was covered by imports, whereas in the fiscal year 2024–25, this figure dropped to approximately 0.02 percent.

Mobile phone production has also accelerated. Government data shows that in 2014–15, the country produced about ₹18,000 crore worth of mobile phones, while in 2024–25, this volume grew to approximately ₹5.5 lakh crore. Over the same period, the total production of electronic goods increased from ₹1.9 lakh crore to ₹11.3 lakh crore.

The PLI scheme played a key role in this transformation. Thanks to it, companies received incentives for large-scale mobile device manufacturing in India. Furthermore, existing factories in the country have expanded, and foreign companies' supply chains have begun shifting towards India.

The most discussed example of these changes is the iPhone from Apple. The company and its manufacturing partners are increasing production in India. This allows India to increase its share in the global electronics supply chain. According to a recent Bloomberg report, about one in four iPhones produced globally is now manufactured in India. This indicates that India is not only producing phones for the domestic market but is also becoming part of the production system that meets global demand.

One factor driving Apple to increase production in India is the desire to reduce dependence on China. Companies refer to this strategy as 'China plus one,' which means establishing factories and supply chains in other countries alongside those already in China to lessen reliance on any single nation. For India, this can translate into opportunities such as investment, job creation, acquisition of technical expertise, and export growth.

Official data is crucial for assessing the results of the PLI scheme. According to information presented to parliament in July 2025, by June 2025, investments under the PLI scheme for large-scale electronics manufacturing reached ₹12,390 crore. During this period, total production reached ₹8.44 lakh crore, and exports under this scheme amounted to ₹4.65 lakh crore.

Furthermore, according to government data provided as of March 2026, the total investment under the scheme reached ₹20,587 crore, and production reached ₹11.61 lakh crore, with exports totaling ₹6.43 lakh crore. These figures reflect the overall achievements over the entire period of the scheme, not just the results for one year. Export growth means that phones manufactured in India are sold in other countries, allowing the country to secure its place in global markets and encouraging companies toward large-scale production.

What benefit does the PLI scheme bring to India? Debates regarding government support for mobile manufacturing have recently intensified. A Bloomberg video report asked how India can benefit if many expensive and critical iPhone components come from abroad.

The Ministry of Textiles has announced the resumption of applications for the Production Linked Incentive (PLI) Scheme for the textile industry. The application portal will be open from November 1st to December 31st. Furthermore, the minimum turnover requirement has been lowered to 100 crore rupees.

This change is aimed at ensuring broader participation from micro, small, and medium enterprises (MSMEs), as well as medium-sized manufacturing units. New applications are being accepted under Round 4 of the scheme.

The objective of this program is to incentivize the production of man-made fiber (MMF) apparel, MMF fabrics, and technical textiles. The program aims to strengthen domestic manufacturing capabilities, attract investment, create jobs, and enhance India's position in global textile value chains.

Reduction in Minimum Turnover Criterion:

The minimum turnover requirement has been reduced from 200 crore to 100 crore rupees for Category 2. This allows MSMEs and medium producers to participate more actively in the scheme. For applicants approved in Round 4, the scheme's validity period has been extended until the financial year 2033-34.

The extended period is intended to give these applicants a longer horizon for investment and operational activities during the creation and expansion of manufacturing capacities.

Ashwin Chandran, Chairman of the Confederation of Indian Textile Industry (CITI), noted that this measure by the Ministry of Textiles is a significant boost of confidence and a major impetus for companies, especially amid the global difficulties facing the industry as it strives to achieve the ambitious goal of $350 billion for the textile and apparel sector by 2030.

He added that 'the liberal terms announced for Round 4—especially the reduction in the turnover threshold and the longer horizon—will provide more opportunities to participate in the scheme, leading to increased investment and job creation, and enhancing the sector's international competitiveness.'

Chandran also emphasized that Round 4 PLI, combined with the proposed implementation of the National Fibre Scheme announced in the latest Union budget statement, represents exactly the policy support that the MMF sector was waiting for.

Although MMF dominates the global textile market, the reduction of GST on MMF fiber and yarn to 5 percent has already eliminated the backward structure of tariffs in the MMF value chain, starting from the fiber stage. However, the backward structure persists at the upstream stage, as PTA and MEG—key raw materials for MMF fiber—continue to be taxed at 18 percent GST.

India's textile and apparel exports grew by 17.51 percent year-on-year in September 2026, according to USD data. Nevertheless, the growth from April to September 2026 was a modest 2.38 percent year-on-year, as apparel exports declined compared to the same period in 2025.

The National Department of Health in South Africa has confirmed that it is actively searching for and procuring alternative medicines amid the scarcity of vital medications.

A representative from the National Department of Health, Foster Mohale, told the publication IOL that the current supply issues are caused by a combination of factors. These include geopolitical tensions in the Middle East, as well as instances of non-compliance with regulatory requirements by local manufacturers under the South African Health Products Regulatory Authority (SAHPRA).

Mohale stated that the Department is engaging with suppliers and acquiring alternative medicines from other sources to minimize the negative impact on patients. He added that until supply restrictions are lifted, some patients may temporarily switch to clinically appropriate substitute drugs for treating the same conditions.

He also emphasized that the Department will closely monitor the situation's development and work with all stakeholders to restore normal supply levels as soon as possible.

The Democratic Alliance (DA) has also expressed concern over the shortage of up to fifty critical medicines. The party warned that patients might experience adverse reactions to substitute drugs or completely stop treatment.

The DA strongly urged the parliamentary Health Committee to investigate the scale of the shortage, its causes, and the measures being taken to protect patients. DA's health spokesperson, Michelle Clark, said she has requested the convening of a special committee and insists that the Minister of Health Aaron Motsoaledi, the Department of Health, SAHPRA, Pharmisa, and the South African Pharmaceutical College appear before this committee.

Clark noted the potential risks to patients when switching to alternative medication. She stressed that there is a significant risk of adverse reactions to substitute drugs, as well as a general risk that greatly concerns the DA—patient fear or confusion regarding the substitution, which could lead them to discontinue treatment.

Among the mentioned medications are amlodipine, used to control high blood pressure and prevent angina; rosuvastatin, which treats high cholesterol and reduces the risk of heart attacks and strokes; and metformin, used to manage type 2 diabetes. The list also includes olanzapine for treating schizophrenia and bipolar disorder, especially manic episodes; pregabalin for relieving nerve pain, seizures, and anxiety disorders; and mebendazole, which is used against intestinal parasitic infections.