Union Electronics and IT Minister Ashwini Vaishnaw has strongly defended the government’s Production Linked Incentive (PLI) scheme for mobile manufacturing after fresh criticism over subsidies provided for iPhone production in India. Responding to reports questioning whether public money was being used effectively, the minister said the scheme has delivered significant economic benefits in the form of higher tax collections, employment generation, and increased electronics manufacturing. Taking to social media, Vaishnaw dismissed the criticism and asserted that the government’s investment has already produced returns far exceeding the incentives paid to manufacturers.

Backing his argument with official figures, Vaishnaw said the government has disbursed around ₹19,000 crore in incentives under the mobile PLI scheme. In return, he claimed the country has collected approximately ₹25,000 crore in direct taxes and nearly ₹3 lakh crore in GST, taking the total tax revenue to about ₹3.25 lakh crore. He also highlighted that the initiative has helped create nearly 12 lakh jobs, positioning India as one of the world’s fastest-growing electronics manufacturing hubs. According to the minister, these numbers demonstrate that the PLI scheme has strengthened the economy while encouraging global companies to expand production in India.

The debate gained momentum after a recent report questioned whether India’s iPhone manufacturing push was generating enough domestic value, arguing that many high-value components are still imported and that India primarily handles assembly. While critics have raised concerns about the long-term effectiveness of subsidies, the government maintains that the PLI scheme is a strategic investment aimed at building a competitive electronics ecosystem, attracting global manufacturers, boosting exports, and gradually increasing domestic value addition. Vaishnaw insisted that the programme’s success should be measured not only by manufacturing output but also by its contribution to tax revenue, employment, and India’s growing position in the global supply chain.