₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) has been notified by the Government of India in a new policy impetus to accelerate domestic mobile-phone manufacturing, increase local value addition, and firm up the electronics manufacturing in India. Ministry of Electronics and Information Technology (MeitY) has notified the scheme on 21 August 2026 and it is effective from 01 April 2026 for a term of five years to end in FY2030-31.
This fresh programme is set up after the existing Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing was put into effect in March 2026. Although the previous programme was responsible in placing India as a huge centre of mobile production as well as export, MPMS’ new programme emphasizes more on the domestic value added, on locating the components and developing native mobile brands.
Under the MPMS, eligible mobile-phone makers may avail of incentives from 2.25 per cent to 5 per cent on eligible sales in the relevant category and conditions. The scheme also offers an additional incentive of up to 1.5 per cent for domestic sourcing of certain key components and sub-assemblies. Also, Indian brands are given additional support for product design and R&D, with a 3 per cent incentive on eligible sales as per the relevant scheme guidelines.
In terms of technology and manufacturing, local sourcing is of greater consequence. Increased component localisation would promote investment across printed circuit boards, camera module, display, batteries, mechanical components and other electronic sub-assemblies. This would help shift the Indian electronics industry gradually beyond final assembly towards higher value manufacturing and a stronger local supply chain.
