The Union Cabinet approved a Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore to boost mobile phone production in India over five years until FY31, according to inc42.com. The scheme offers incentives up to 5% on eligible sales, with additional benefits for domestic sourcing and research and development (R&D).
The MPMS will provide companies an extra 1.5% incentive for sourcing key components domestically and a further 3% for product design and R&D. This scheme follows the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which ended on March 31, 2026. The government expects the scheme to drive cumulative mobile phone production worth about ₹39 lakh crore and create around 60,000 direct jobs.
Mobile phones have become India’s largest exported product category in 2025, surpassing diesel fuel and cut diamonds, highlighting the sector’s growing importance in the country’s electronics production and exports. The scheme aims to strengthen India’s position in global value chains by encouraging homegrown smartphone brands and increasing domestic manufacturing capabilities.
The MPMS is set to run until FY31, with the government projecting significant growth in mobile production and exports during this period. The scheme’s incentives are designed to promote local manufacturing, component sourcing, and innovation in product design, reinforcing India’s strategic focus on electronics manufacturing.