New Delhi, August 21 (APAC Media): The Ministry of Electronics and Information Technology (MeitY) has notified the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore to strengthen India’s position as a global electronics manufacturing hub.
The five-year scheme will be implemented from FY 2026-27 to FY 2030-31, with a focus on expanding mobile phone production, increasing domestic value addition and strengthening the wider manufacturing ecosystem.
Two Target Segments
The scheme will support two key areas, large-scale mobile phone manufacturing and the development of Indian mobile phone brands.
Eligible manufacturers under the first segment will receive incentives ranging from 2.25% to 5%. Indian brands will receive a 5% incentive, along with an additional 3% incentive for domestic design and R&D.
Manufacturers can also receive an additional incentive of up to 1.5% for sourcing key components and sub-assemblies domestically.
The incentives are aimed at deepening local supply chains and reducing dependence on imports.
Strengthening India’s Mobile Manufacturing Sector
The MPMS builds on the growth of India’s electronics manufacturing sector under the Make in India initiative.
India is currently the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used domestically manufactured in the country.
Smartphones also became India’s largest export category in 2025.
The earlier Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) played a key role in developing India’s mobile manufacturing and export ecosystem.
With the scheme ending on March 31, 2026, MPMS is aimed at sustaining and accelerating this growth.
Focus on Indian Brands and Innovation
The scheme places particular emphasis on developing stronger Indian mobile phone brands.
Eligible companies must meet criteria including Indian incorporation, ownership of intellectual property and trademarks in India, management control by Indian citizens and more than 51% Indian shareholding.
They must also have in-house design and R&D capabilities in the country.
Boost to Domestic Supply Chains
The scheme provides additional incentives for manufacturers that source key components and sub-assemblies from India.
To qualify, these components must be localised for at least 25% of the total mobile phone units produced during a financial year.
The measure is expected to encourage greater localisation and strengthen India’s domestic electronics supply chain.
Production and Employment
The scheme is also projected to generate around 60,000 direct jobs in the electronics manufacturing sector.
With its focus on production scale, domestic value addition, Indian brands, design and R&D, the MPMS is positioned as the next phase of India’s electronics manufacturing drive, supporting Make in India, Atmanirbhar Bharat and greater participation in global value chains.
Also Read:Â
