Cabinet approves Rs 62,500 crore mobile phone manufacturing scheme
New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi has approved a new scheme, the Mobile Phone Manufacturing
Scheme (MPMS), in India. With a budgetary outlay of Rs 62,500 crore, the scheme is aimed at boosting domestic mobile phone production and strengthening India's electronics manufacturing base.
MPMS will run for five years, from FY 2026-27 to FY 2030-31, and seek to deepen domestic value addition, strengthen supply chain resilience, and enhance India's global competitiveness in mobile manufacturing.
Beyond boosting production volumes, the MPMS is designed to help build Indian mobile brands that work towards technological sovereignty, capture greater economic value, and encourage Indian-owned patents in design and research and development.
Under the scheme, manufacturers will receive incentive support on eligible sales at differentiated rates ranging from 2.25 per cent to 5 per cent. An additional incentive of up to 1.5 per cent is available for companies that source key components and sub-assemblies domestically.
To specifically encourage the growth of Indian brands, the scheme offers and additional 3 per cent incentive on eligible sales linked to investment in product design and R&D.
Over its five-year tenure, the scheme is projected to drive cumulative mobile phone production worth approximately Rs 39,00,000 crore, alongside a significant rise in exports. The government expects the initiative to create around 60,000 direct jobs, contributing to broader economic growth and reinforcing India's position as a global electronics manufacturing hub.
