New Delhi: The Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary allocation of ₹62,500 crore, marking a fresh push to expand India’s electronics manufacturing ecosystem. The new initiative is designed to increase domestic value addition, strengthen supply chains, encourage research-led manufacturing, and improve India’s competitiveness in the global smartphone market.
The scheme will remain in force for five years, from FY 2026-27 to FY 2030-31, and offers incentive support on eligible mobile phone sales manufactured in India. Incentive rates will range from 2.25% to 5%, depending on eligibility criteria. Manufacturers can also receive an additional incentive of up to 1.5% for increasing domestic sourcing of key components and sub-assemblies.
To promote indigenous innovation, the government has also introduced an additional 3% incentive for companies building Indian mobile phone brands through product design and research and development activities.
According to the Cabinet decision, the scheme aims to accelerate production capacity while encouraging companies to deepen local manufacturing capabilities. By supporting component sourcing and domestic innovation, the initiative seeks to reduce import dependence and strengthen India’s position in global electronics supply chains.
The government expects the programme to deliver significant economic outcomes over its five-year tenure. Mobile phone production is projected to reach around ₹39,00,000 crore, accompanied by a substantial rise in exports. The scheme is also expected to generate approximately 60,000 direct jobs, supporting employment growth across the electronics manufacturing sector.
The approval builds on the momentum created by India’s earlier Production Linked Incentive (PLI) programme for large-scale electronics manufacturing, which concluded on 31 March 2026. During the past decade, India’s electronics sector has expanded rapidly under the Make in India initiative, with electronics manufacturing increasing sevenfold and exports rising elevenfold since FY 2014-15.
India has also emerged as the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country now produced domestically. In 2025, smartphones became India’s largest exported product category, overtaking traditional export segments such as diesel fuel and cut diamonds.
With the launch of MPMS, the government is seeking to build on these gains by encouraging higher domestic value creation, fostering Indian technology brands, and strengthening the country’s long-term role in global electronics manufacturing.
Source: This article is based on an official press release issued by the Press Information Bureau
Press Release Page | Press Information Bureau
