India's updated production-linked incentive (PLI) scheme for mobile phones, referred to as PLI 2.0, aims to achieve over 55% domestic value addition. This initiative is designed to alleviate concerns regarding the country's reliance on imported high-value components, despite the existing PLI scheme's success in transforming India into a significant smartphone assembly and export center. The Ministry of Electronics and Information Technology (MeitY) is collaborating with the finance ministry to refine localization targets and the incentive structure. The current PLI scheme, initiated in April 2020 with an outlay of ₹40,995 crore (approximately $5.7 billion USD), has already resulted in substantial investments and production increases. The revised PLI 2.0 will include incentives for local sourcing of essential components, thus promoting a more integrated electronics supply chain. Officials anticipate that many of the 75 manufacturing facilities approved under the electronic component manufacturing scheme (ECMS) will begin production soon, further supporting the goal of reducing import dependence in strategic electronics sectors.