Government launches mobile scheme as India makes another major push to build a stronger mobile phone manufacturing ecosystem at home.

The Indian Government launches mobile scheme. The Union Ministry of Electronics and Information Technology (MeitY) has formulated the Mobile Phone Manufacturing Scheme (MPMS) which will be operationalised from FY2026-27 to FY2030-31. The scheme aims to increase domestic value addition and strengthen supply chains to bolster the competitiveness of Indian mobile phone brands in the domestic and international markets.

Big budget, More Big Plans

The ₹62,500 crore programme will not only incentivise companies to manufacture mobile phones but also encourage them to localise more components and develop intellectual property, design and brands in India.

The Union Ministry of Electronics and Information Technology (MeitY) has proposed a two tier scheme; one for promoting scaling of mobile phone manufacturing and the other for supporting Indian mobile phone brands. Under the scheme, eligible entities stand to benefit from an incentive of 2.25 per cent to 5 per cent on sales of eligible production. Indian brands may access an additional 3 per cent incentive on eligible Indian design and R&D. Firms may also receive an additional 1.5 per cent on the domestic sourcing of critical components.

The Government wants India to have an Indian brand

Electronics and IT Minister Ashwini Vaishnaw stated that India is determined to localise design and R&D to empower Indian industry and gain greater market share. “We are very particular that the design has to be your own design,” he said while speaking to companies shortlisted for the Indian brand segment. Vaishnaw expects India to witness the emergence of “a big Indian brand” in the middle of next year.

That is significant since branding under the scheme would require Indian ownership, Indian design and intellectual property. It also aims to reduce India’s dependence on foreign firms for design and R&D.

India’s Mobile Phone Production is set to grow substantially, creating many jobs.

The government estimates that mobile phone production is likely to contribute ₹39 lakh crore to the Indian economy during the term of the scheme. In addition, it is estimated that 60,000 direct jobs would be generated. The government wants India to emerge as a major global manufacturing destination for electronics.

The government’s production linked incentive (PLI) scheme has already contributed to making India a major mobile phone manufacturing country. Business Fortune believes that the latest push builds on the success of the PLI scheme and seeks to promote greater localisation of components and the creation of Indian brands.

 

FAQs

What is the ₹62,500 crore scheme?

The ₹62,500 crore scheme is the Mobile Phone Manufacturing Scheme (MPMS).

How long will the scheme run?

The Mobile Phone Manufacturing Scheme will run for five years from FY2026-27 to FY2030-31.

How much incentive can Indian brands claim?

Indian brands can claim a 5 per cent manufacturing incentive, 3 per cent for eligible Indian design and R&D.

Does the scheme create jobs?

Yes, the scheme estimates the creation of around 60,000 direct jobs.

What does the government seek to achieve through the scheme?

Apart from incentivising higher production, the government seeks to promote Indian brands and localisation of components to bolster India’s mobile phone supply chains.