New Delhi, August 22: The recently approved Mobile Phone Manufacturing Scheme (MPMS) is poised to invigorate the electronics manufacturing sector in India. Industry experts believe this initiative will play a crucial role in enhancing local value addition, reducing reliance on imported components, and strengthening backward integration within the electronics supply chain.
Experts have noted that the Electronics Components Manufacturing Scheme (ECMS) is no longer limited to paperwork; it has reached production levels. To date, 106 projects have received approval, with 38 manufacturing plants already in operation and 16 others in advanced stages of construction.
Ashok Chandak, President of Semi India and the India Electronics and Semiconductor Association (IESA), emphasized the industry’s long-standing need to boost production capacity, develop strong design teams, increase local sourcing, and adopt global quality standards. Current data indicates that these changes are becoming evident at the grassroots level.
Chandak pointed out that India has historically depended on imports for critical electronic components like multilayer PCBs, display modules, sensors, and relays. However, this trend is shifting, and India is moving towards becoming not just a significant market for global companies but also a global manufacturing hub.
He highlighted recent approvals for 31 new projects under the Electronics Components Manufacturing Scheme, which propose an investment of approximately ₹6,844 crores. In the previous five months alone, 75 projects were approved, amounting to an investment proposal of ₹61,671 crores.
For the first time, domestic production of several key components will commence under these new projects. This includes essential electronic parts like filters, coils, and speakers, as well as raw materials such as acetylene black and electrolyte additives.
Chandak further stated that this transformation is advancing India beyond merely being a mobile phone assembly center. It is shifting towards a component and material-based manufacturing model, which will enhance Indian intellectual property, design, and manufacturing capabilities at every level.
Prashant Singhal, leader of Telecommunications and Customer & Industry Sectors at EY India, remarked that the new mobile phone manufacturing scheme will build upon the successes of previous initiatives. He noted that mobile phone production in India has increased 33 times and mobile exports have surged 165 times from the fiscal year 2014-15 to 2025-26.
Singhal added that the new scheme will provide special incentives for Indian mobile brands, including additional support for domestic sourcing of components and research and development (R&D). This will enhance the competitive capacity of Indian companies and foster a robust electronics manufacturing ecosystem in the country.
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