New Delhi: The Ministry of Electronics and Information Technology (MeitY) has notified the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore.
The mobile phone manufacturing scheme aims to enhance India’s global competitiveness by increasing scale, deepening the mobile manufacturing supply chain through higher Domestic Value Addition (DVA), and strengthening domestic manufacturing capabilities.
The mobile phone manufacturing scheme will also support Indian mobile phone brands in achieving technological sovereignty, capturing greater economic value, and encouraging Indian patents in design and research and development (R&D), while generating employment.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw said that the Mobile Phone Manufacturing Scheme will provide a significant impetus to the development of Indian-owned mobile brands, intellectual property and design.
Emphasising the importance of genuine Indian ownership, the Union Minister said that the design, intellectual property and brand must be Indian-owned and capable of competing with the best products in the respective market segment.
He further stated that the Government will undertake a meticulous evaluation to ensure that the intellectual property is genuinely Indian-owned, while non-fiscal and other support measures will be developed in consultation with the industry.
Mobile Phone Manufacturing Scheme: Background
The Prime Minister’s Make in India vision has propelled electronics manufacturing to grow seven-fold and exports eleven-fold since FY 2014-15. The electronics manufacturing sector has emerged as a major employer, particularly for young men and women from far-flung villages.
Several manufacturing plants now employ more than 5,000 people at a single location, while employment at some facilities has reached 20,000.
This growth has been primarily driven by mobile phone manufacturing, with mobile phones now constituting a major share of India’s electronics production and exports and playing a critical role in strengthening the country’s position in global value chains.
The mobile phone manufacturing scheme comes as India is now the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in India being Made in India today.
Smartphones emerged as India’s single largest exported product category in 2025, surpassing traditional leading export items such as diesel fuel and cut diamonds.
The Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), one of the most successful PLI Schemes, played a catalytic role in establishing India as a global hub for mobile phone manufacturing and exports. Its tenure ended on 31 March 2026.
To sustain this growth momentum and further scale up production of mobile phones, the Government has now notified the Mobile Phone Manufacturing Scheme (MPMS).
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Mobile Phone Manufacturing Scheme: Key Features
The mobile phone manufacturing scheme will have two target segments:
- Target Segment 1 (TS1): Incentivizing mobile phone manufacturing
- Target Segment 2 (TS2): Supporting Indian mobile phone brands
The scheme will have a tenure of five years, covering FY 2026-27 to FY 2030-31. Applicants under TS2 may be granted a gestation period of one year.
For TS1, the mobile phone manufacturing scheme provides a differentiated incentive ranging from 2.25% to 5%.
For TS2, the scheme provides an incentive of 5% for Indian brands, along with an additional incentive of 3% for Indian design and R&D. The scheme will also provide non-fiscal support to Indian brands.
In addition, an incentive of up to 1.5% will be provided for domestic sourcing of key components and sub-assemblies for both target segments.
Applicants under the mobile phone manufacturing scheme will be mobile phone manufacturers, including Electronics Manufacturing Services (EMS) providers, registered in India. Sales and incentives payable to the applicant will be computed on a brand-wise basis.
Mobile Phone Manufacturing Scheme Eligibility Criteria
Eligibility under TS1 extends to mobile phone manufacturers, including Electronics Manufacturing Services (EMS) companies, registered in India with a minimum turnover of ₹10,000 crore in FY 2025-26.
Existing brands must meet an annual threshold of ₹5,000 crore every year over and above FY 2025-26 sales.
A new brand will become eligible only after achieving total annual sales of ₹10,000 crore in India and must thereafter meet the year-on-year threshold sales requirement of ₹5,000 crore.
Under TS2, eligibility extends to mobile phone manufacturers, including EMS companies, registered in India with a minimum turnover of ₹1,000 crore in FY 2025-26 and satisfying all criteria of an ‘Indian Brand’.
The criteria for an Indian Brand include:
- Registered or incorporated in India
- Intellectual property and trademark held within India
- Management control with Indian citizens
- More than 51% shareholding held by Indian citizens
- In-house R&D and design capabilities in India
Additional Incentive for Domestic Sourcing
The mobile phone manufacturing scheme also seeks to accelerate domestic manufacturing and strengthen Atmanirbharta in India’s mobile phone manufacturing ecosystem.
The scheme provides an additional incentive of up to 1.5% for domestic sourcing of key components and sub-assemblies, provided such components are localised for a minimum of 25% of total mobile phone units manufactured in a financial year.
The additional incentive under the mobile phone manufacturing scheme is designed to reward and reinforce genuine, deep-rooted domestic manufacturing.
Expected Outcomes of Mobile Phone Manufacturing Scheme
During the tenure of the mobile phone manufacturing scheme, cumulative mobile phone production in the country is expected to reach approximately ₹39 lakh crore, along with a significant increase in mobile phone exports.
The Mobile Phone Manufacturing Scheme is also expected to generate around 60,000 direct jobs, contributing to economic growth and employment generation while strengthening India’s position as a global electronics manufacturing hub.
The scheme is aimed at further enhancing India’s mobile manufacturing scale, increasing Domestic Value Addition, strengthening domestic capabilities and supporting the development of Indian-owned mobile brands, intellectual property and design.
