The Ministry of Electronics and Information Technology (MeitY) has notified the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore, aimed at strengthening India’s position as a global hub for electronics manufacturing.

The five-year scheme will be implemented from FY 2026-27 to FY 2030-31 and focuses on increasing the scale of mobile phone production, enhancing domestic value addition and strengthening capabilities across the manufacturing ecosystem.

Two Target Segments

The scheme has two key target segments. The first focuses on large-scale mobile phone manufacturing, while the second aims to support and strengthen Indian mobile phone brands.
Under the first segment, eligible manufacturers will receive differentiated incentives ranging from 2.25% to 5%. For Indian brands, the scheme provides a 5% incentive, along with an additional 3% incentive for Indian design and research and development. The scheme also provides an additional incentive of up to 1.5% for domestic sourcing of key components and sub-assemblies. The move is aimed at deepening the domestic supply chain and promoting greater self-reliance in mobile phone manufacturing.

India’s Mobile Manufacturing Growth

The scheme builds on the growth achieved by India’s electronics manufacturing sector under the Make in India initiative. Electronics manufacturing has grown significantly since FY 2014-15, while mobile phones have emerged as a major driver of production and exports.
India is now the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country being made in India. Smartphones also emerged as India’s largest exported product category in 2025, surpassing traditional leading export items such as diesel fuel and cut diamonds. The earlier Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) played a key role in establishing India as a global hub for mobile phone manufacturing and exports. With its tenure ending on March 31, 2026, the new MPMS seeks to sustain and further accelerate this growth.

Focus on Indian Brands and Innovation

A key feature of the new scheme is its focus on building stronger Indian mobile phone brands. To qualify under the Indian brand segment, companies must meet criteria including registration or incorporation in India, ownership of intellectual property and trademarks in India, management control with Indian citizens, and more than 51% shareholding held by Indian citizens. The companies must also have in-house design and R&D capabilities in India. This approach is intended not only to increase manufacturing capacity but also to help Indian companies capture a larger share of the economic value generated through technology, product design and intellectual property.

Boost to Domestic Supply Chains

The additional incentive for domestic sourcing is aimed at encouraging manufacturers to source key components and sub-assemblies from within India. To qualify, such components must be localised for a minimum of 25% of the total mobile phone units manufactured in a financial year. The measure is expected to support deeper localisation and strengthen the domestic electronics supply chain.

Production and Employment

The government expects the scheme to generate significant economic activity over its five-year tenure. Cumulative mobile phone production in India is projected to reach approximately ₹39 lakh crore, accompanied by a significant increase in exports. The scheme is also expected to generate around 60,000 direct jobs, further strengthening employment opportunities in the electronics manufacturing sector.

With a focus on manufacturing scale, domestic value addition, Indian brands, design and R&D, the Mobile Phone Manufacturing Scheme marks the next phase of India’s electronics manufacturing journey, strengthening Make in India, Atmanirbhar Bharat and India’s role in global value chains.