India Announces ₹62,500 Crore Mobile Phone Manufacturing Scheme

The Indian government has launched the Mobile Phone Manufacturing Scheme (MPMS) with a substantial budget of ₹62,500 crore. This initiative aims to strengthen India’s position as a global mobile phone manufacturing centre. The implementation of the scheme will extend over five years, from the fiscal year 2026-2027 to 2030-2031.

Under the MPMS, manufacturers are set to receive incentives ranging from 2.25% to 5% on eligible sales of mobiles produced in India. Furthermore, an additional incentive of up to 1.5% will be offered for procuring crucial components and sub-assemblies from local sources. Indian brands engaged in research and development (R&D) and product design will also benefit, receiving an added 3% incentive on eligible sales.

The government anticipates that the scheme will facilitate the production of mobile phones valued at approximately ₹39 lakh crore during the designated five-year period. Additionally, it is projected to enhance exports and create around 60,000 direct job opportunities, contributing significantly to economic expansion and employment.

The MPMS builds upon the success of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which concluded on 31 March 2026. According to government sources, the initiative has propelled electronics manufacturing growth by a factor of seven and has led to an eleven-fold increase in exports since the financial year 2014-2015.

India recently achieved the status of the world's second-largest mobile phone manufacturer by volume, with an impressive 99.2% of mobile phones used domestically being manufactured within the country. Furthermore, smartphones have emerged as India's largest export product in 2025, underscoring the mobile phone industry's vital role in the nation’s manufacturing and export landscape.