New Delhi, July 15 (APAC Media): The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore to expand domestic mobile phone production, strengthen local supply chains, and enhance India’s position as a global electronics manufacturing hub.
The scheme will be implemented over five years (FY 2026–27 to FY 2030–31) and aims to increase domestic value addition, promote indigenous technology, and support the growth of Indian mobile phone brands.
Incentives for Manufacturers
Under the scheme, manufacturers will receive incentives ranging from 2.25% to 5% on eligible mobile phone sales made in India.
An additional 1.5% incentive will be provided to companies that source key components and sub-assemblies domestically, encouraging greater localisation across the supply chain.
Production, Exports and Jobs
The government expects the scheme to generate cumulative mobile phone production worth around Rs 39 lakh crore over the next five years while significantly increasing exports.Â
The initiative is also projected to create nearly 60,000 direct jobs, further strengthening India’s electronics manufacturing ecosystem.
Building on India’s Manufacturing Growth
The new scheme succeeds the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing, which concluded in March 2026.
According to the government, India has emerged as the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones sold domestically now being manufactured in India.
The government also noted that smartphones became India’s largest export product category in 2025, reflecting the country’s growing role in global electronics manufacturing.
