To deepen domestic manufacturing, scale-up its own supply chain, less dependent on import, and increasing the number of homegrown smartphones, India announced Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS). The scheme’s time period covers five years, from FY 2026-27 to FY 2030-31 and it was approved by the Union Cabinet. The scheme is designed to strengthen mobile-phone manufacturing beyond large-scale assembly while supporting the Indian brand and technology development.
The new scheme enters the development phase just after the completion of the Production Linked Incentive (PLI) Scheme whose tenure ended in March 2026. Under this scheme, the manufacturers will receive incentives depending on their eligible selling products with rates ranging from 2.5% to 5%. Companies can also receive an additional incentive of up to 1.5% for domestic sourcing of key components and sub-assemblies. For Indian brand, the scheme provides 5% incentive, along with additional 3% incentive linked to product design and R&D. These steps were taken to encourage deeper localisation of the mobile-phone supply chain.
Through this scheme, the government targets a production value of Rs 39 lakh crore in mobile phones over the five-year tenure and aims to create around 60,000 direct opportunities. The scheme also aims to promote Indian brands and intellectual property by offering target-based incentives for domestic research, design, and component ownership.
The existing Indian market already consumes 99.2% of the mobile phones manufactured or assembled in the country and India is the world’s second-largest mobile-phone manufacturer in the global market. Exporting mobile phones is also increasing in India, thus supporting its integration into global value chains.
The new scheme is aimed at strengthening domestic manufacturing and deepening India’s electronics manufacturing capabilities through component sourcing, research and development (R&D), and support for Indian-owned brands. Along with the development of manufacturing, the mobile phone manufacturing scheme (MPMS) is also intended to strengthen India’s position in global value chains in electronics manufacturing.
