Cabinet approves ₹62,500-crore Mobile Phone Manufacturing Scheme to boost production, exports

The Union Cabinet on Wednesday approved a ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS) to boost domestic production, increase local value addition, strengthen supply chains and promote Indian brands.

The scheme will run for five years from 2026-27 to 2030-31 and provide incentives linked to eligible sales of mobile phones manufactured in India.

According to an official statement, the incentive support will range between 2.25% and 5% of eligible sales.

Companies can also receive an additional incentive of up to 1.5% for sourcing key components and sub-assemblies domestically.

The scheme offers an additional 3% incentive on eligible sales for companies undertaking design and research and development (R&D) aimed at building Indian mobile phone brands.

"MPMS scheme also aims at building Indian brands to achieve technological sovereignty, capture large economic value and create Indian patents in design and R&D," the official release said.

It added that the MPMS also seeks to "build Indian brands to achieve technological sovereignty, capture large economic value and create Indian patents in design and R&D."

The government expects cumulative mobile phone production worth around ₹39 lakh crore during the five-year scheme period.

The scheme is also projected to create around 60,000 direct jobs.

The new programme succeeds the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing, whose tenure ended on March 31, 2026.

The government also highlighted that smartphones became India's single largest exported product category in 2025, overtaking traditional export items such as diesel fuel and cut diamonds.