Govt Approves ₹62,500 Crore Mobile Manufacturing Scheme
Five-year MPMS aims to boost domestic production, exports, value addition and create 60,000 direct jobs
- Union Cabinet approves ₹62,500 crore Mobile Phone Manufacturing Scheme.
- Scheme to run from FY 2026-27 to FY 2030-31.
- Incentives to promote manufacturing, domestic sourcing and Indian brands.
- Mobile production projected to reach ₹39 lakh crore during the scheme period.
GG News Bureau
New Delhi, 15th July: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore to strengthen India’s electronics manufacturing ecosystem, enhance domestic value addition and boost exports.
The five-year scheme, which will be implemented from FY 2026-27 to FY 2030-31, seeks to scale up mobile phone production, strengthen supply chains, improve global competitiveness and promote Indian brands through incentives for design, research and development.
Under the scheme, manufacturers will receive incentive support ranging from 2.25 per cent to 5 per cent on eligible sales. An additional incentive of up to 1.5 per cent will be provided for domestic sourcing of key components and sub-assemblies, while Indian brands undertaking product design and R&D will receive an extra 3 per cent incentive on eligible sales.
According to the government, the scheme is expected to generate cumulative mobile phone production worth approximately ₹39 lakh crore during its tenure and create around 60,000 direct jobs, further strengthening India’s position as a global electronics manufacturing hub.
The government said the initiative builds on the success of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which concluded on March 31, 2026, and played a significant role in transforming India into one of the world’s leading mobile phone manufacturing destinations.
India is currently the world’s second-largest mobile phone manufacturer by volume, with 99.2 per cent of mobile phones used in the country manufactured domestically. Smartphones also emerged as India’s largest exported product category in 2025, surpassing traditional export items such as diesel fuel and cut diamonds.
The government said the new scheme will further accelerate manufacturing, increase exports, promote technological self-reliance and support the vision of Make in India by encouraging innovation, patent creation and indigenous product development.
