The Government of India has notified the ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS), marking the next major phase in India’s electronics manufacturing journey.
Effective from April 1, 2026, through FY31, the five-year scheme aims to expand mobile phone production, strengthen domestic component manufacturing and make Indian brands more competitive globally.
🔹 Key Highlights of MPMS
• ₹62,500 crore total scheme outlay
• Incentives of 2.25%–5% on eligible mobile phone sales
• Up to 1.5% additional incentive for sourcing specified components and sub-assemblies domestically
• Additional 3% incentive for eligible product design and R&D focused on building Indian brands
• Indian handset brands can qualify for incentives of up to 5%
• Targeted cumulative mobile phone production of around ₹39 lakh crore over five years
• Approximately 60,000 direct jobs expected to be created
📈 From Manufacturing Scale to Supply-Chain Depth
The new scheme builds on the success of PLI 1.0, under which mobile phone production reached ₹11.61 lakh crore, significantly exceeding the ₹8.12 lakh crore target.
Investment crossed ₹20,500 crore, against the original target of ₹7,000 crore.
The earlier PLI programme helped attract major global players, including Samsung and manufacturers producing Apple devices in India, while contributing to the rapid expansion of India’s electronics manufacturing ecosystem.
🏭 The Next Opportunity: Components & Local Value Addition
India’s domestic value addition in mobile phone manufacturing has increased from approximately 15% to 23%.
MPMS now shifts the focus further toward local sourcing of components and sub-assemblies, creating opportunities across the electronics supply chain.
With 99.2% of mobile phones used in India now manufactured domestically, the next frontier is increasing the depth of localisation and building globally competitive Indian electronics brands.
India’s mobile phone exports have also expanded dramatically, growing 166 times between 2014 and 2025, with a reported CAGR of around 59%.
🚀 The message is clear: India is moving from “Make in India” toward “Make, Design and Source in India.”
The new MPMS could accelerate investments in components, sub-assemblies, electronics manufacturing, R&D, design, supply-chain infrastructure and export-oriented production.
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