Indian Union Cabinet has approved a new Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore, aiming to deepen India’s role in the global electronics value chain. The scheme, cleared under the chairmanship of Prime Minister Narendra Modi, is designed to scale up mobile phone production, raise domestic value addition and strengthen supply chain resilience over a five-year period.
The programme will run from the 2026-27 to 2030-31 financial years and will provide incentive support on eligible sales of mobile phones manufactured in India. According to the government, the scheme offers differentiated incentive rates ranging from 2.25% to 5%, with an additional incentive of up to 1.5% tied to domestic sourcing of key components and sub-assemblies. A further 3% incentive on eligible sales is available for design and research and development activities, specifically aimed at supporting Indian brands.
New Delhi expects the initiative to significantly lift output and exports from India’s mobile manufacturing sector. Over the tenure of the scheme, cumulative mobile phone production is projected to reach approximately ₹39,00,000 crore, alongside a “significant increase” in export volumes. The scheme is also expected to generate around 60,000 direct jobs, contributing to both employment and India’s positioning as a global electronics manufacturing hub.
The government framed the announcement against the backdrop of a rapid expansion in electronics manufacturing under the broader Make in India agenda. It said electronics manufacturing has grown sevenfold and electronics exports elevenfold since the 2014-15 financial year, with factories in the sector emerging as major employers for young workers, including those from rural areas. Some facilities now employ more than 5,000 people at a single location.
Mobile phones have been central to this expansion and are described by the government as the anchor of India’s electronics manufacturing ecosystem. India is now the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country produced domestically. Smartphones became India’s single largest exported product category in 2025, overtaking traditional export leaders such as diesel fuel and cut diamonds, and now account for a major share of India’s electronics production and exports.
Officials also linked the new scheme to the earlier Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, which they said played a transformative role in positioning India as a global hub for mobile manufacturing and exports. The tenure of that earlier incentive scheme ended on 31 March 2026, and the new Mobile Phone Manufacturing Scheme is intended to build on the foundation it created.
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