New Delhi, July 15: The Cabinet Committee, led by Prime Minister Narendra Modi, approved the Mobile Phone Manufacturing Scheme (MPMS) with a budget of ₹62,500 crore on Wednesday. This initiative aims to enhance domestic production and exports of mobile phones while strengthening India’s position as a global electronics manufacturing hub.
The scheme will run from the fiscal year 2026-27 to 2030-31, spanning five years. Its objectives include bolstering the supply chain, increasing global competitiveness, and promoting the growth of Indian mobile phone brands through investments in design and research and development (R&D).
Under the MPMS, manufacturers will receive incentive support ranging from 2.25% to 5% on eligible sales of mobile phones made in India. Additionally, the scheme offers an extra incentive of up to 1.5% related to domestic sourcing of key parts and sub-assemblies.
To promote domestic brands, manufacturers will be eligible for an additional 3% incentive on sales related to product design and R&D.
According to the Cabinet, the scheme is expected to generate approximately ₹39 lakh crore in total mobile phone production during its duration, along with a significant increase in handset exports from the country.
The MPMS is projected to create around 60,000 direct jobs, contributing to employment generation and economic growth.
The Cabinet emphasized that this initiative builds on the success of the government’s ‘Make in India’ program, which has seen electronics manufacturing grow sevenfold and exports increase elevenfold since the fiscal year 2014-15.
India is now the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country produced domestically.
The government noted that by 2025, smartphones are expected to become India’s largest export category, surpassing traditional categories like diesel fuel and cut diamonds.
Furthermore, this new scheme will replace the Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing, which concluded on March 31. The government stated that the PLI scheme played a crucial role in establishing India as a global hub for mobile phone manufacturing and exports.
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