Dixon Tech, Kaynes, Syrma in spotlight on Centre’s ₹62,500 crore mobile manufacturing push; key details to know

Shares of electronics manufacturing services (EMS) companies such as Dixon Technologies, Kaynes Technology, and Syrma SGS Technology are expected to be in the spotlight on Monday, August 24.

This is because the Centre on Friday announced the launch of the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS), with incentives for manufacturers ranging from 2.5% to 5%.

According to the guidelines of the ₹62,500 crore MPMS, mobile phone companies, including electronic manufacturing services (EMS) firms with 51% Indian ownership, having a turnover of ₹1,000 crore in FY26 will also be eligible for participation in the scheme.

The MPMS is aimed at providing support in the form of production-linked incentives for manufacturing mobile phones in India.

"Mobile Phone Manufacturing Scheme is open officially from today (Friday). It will be effective from April 1, 2026," Union Minister of Electronics and Information Technology Ashwini Vaishnaw said.

What does this mean?

The MPMS opened for applications on Friday and will be effective retrospectively from April 1, 2026, allowing eligible companies to claim incentives for qualifying production/sales from the start of FY27.

Key details to know

The five-year scheme, set to run from FY27 to FY31, will offer production-linked incentives (PLIs) for mobile phones manufactured in India.

It has two key components — promoting mobile phone manufacturing and supporting Indian mobile phone brands.

To qualify for incentives, applicant companies, including electronics manufacturing services (EMS) firms, must be registered in India and have reported a turnover of at least ₹10,000 crore in FY26.

The scheme comes as the government seeks to sustain the momentum in India’s electronics and mobile phone manufacturing sector following a series of policy interventions.

According to the government document, electronics manufacturing has grown seven-fold, and exports have increased 11-fold since FY15. Smartphones also became India’s largest exported product in 2025, overtaking diesel fuel and cut diamonds.

Incentives and sales targets

Under the first segment, mobile phone manufacturers, including electronics manufacturing services companies registered in India, will need to have a minimum turnover of ₹10,000 crore in FY26 to become eligible.

For existing brands, the scheme sets incremental sales thresholds over FY26 sales.

Companies will have to achieve additional sales of ₹5,000 crore in FY27, rising by ₹5,000 crore every year up to ₹25,000 crore in FY31.

A new brand will become eligible only after achieving annual sales of ₹10,000 crore in India and will subsequently have to meet the ₹5,000 crore year-on-year (YoY) threshold.

The scheme introduces a moving baseline for calculating eligible sales.

Baseline sales for a financial year will be the brand’s domestic sales in the preceding financial year plus 15%.

Eligible sales will be calculated by subtracting this baseline from the brand’s total target-segment sales during the year.

What Ashwini Vaishnaw said

“We are very closely coordinating with the industry, and we hope that during the tenure of this mobile phone manufacturing scheme, we have success in having an Indian brand as well,” Union Electronics and Information Technology Minister Ashwini Vaishnaw said.

The government is already in talks with three Indian players to set up an Indian mobile phone brand and is hopeful that a final product will be out in the market within the next 18 months, Vaishnaw said.