The Union Cabinet has approved the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to strengthen India’s electronics manufacturing ecosystem. The five-year scheme, running from FY 2026-27 to FY 2030-31, offers incentives of 2.25% to 5% on eligible sales, along with additional benefits for domestic component sourcing and design & R&D. The government expects the scheme to generate ₹39 lakh crore worth of mobile phone production and create around 60,000 direct jobs, further establishing India as a global mobile manufacturing hub.
Key Highlights
- Cabinet approves ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS).
- Scheme to run for five years from FY 2026-27 to FY 2030-31.
- Manufacturers to receive incentives of up to 5% plus additional benefits for domestic sourcing and R&D.
- Government targets ₹39 lakh crore mobile production and 60,000 direct jobs.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore. The initiative aims to strengthen India’s position in the global electronics manufacturing sector by increasing mobile phone production, domestic value addition, supply chain resilience, and exports. The scheme also seeks to promote Indian mobile brands and encourage innovation through design and research & development (R&D).
Under the new scheme, manufacturers will receive incentives ranging from 2.25% to 5% on eligible sales of mobile phones manufactured in India. Companies can also claim an additional incentive of up to 1.5% by sourcing key components and sub-assemblies domestically, while Indian brands investing in product design and R&D will be eligible for an extra 3% incentive. The scheme will remain in force from FY 2026-27 to FY 2030-31.
The government estimates that the MPMS will help generate approximately ₹39 lakh crore in cumulative mobile phone production during its tenure while significantly boosting exports. The initiative is also expected to create around 60,000 direct employment opportunities, benefiting thousands of skilled workers and strengthening India’s electronics manufacturing workforce.
The new scheme builds on the success of the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing, which concluded on March 31, 2026. According to the government, electronics manufacturing has grown seven times and electronics exports have increased eleven times since FY 2014-15. India is now the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country manufactured domestically. In 2025, smartphones became India’s largest export product category, reflecting the rapid expansion of the country’s electronics sector.
The Mobile Phone Manufacturing Scheme is expected to further accelerate India’s ambition of becoming a global electronics manufacturing hub. By encouraging local manufacturing, domestic component production, innovation, and Indian mobile brands, the government aims to enhance technological self-reliance while creating employment and increasing exports over the next five years.
The ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) represents a major push for India’s electronics industry. With financial incentives for manufacturing, domestic sourcing, and innovation, the scheme is expected to drive production, exports, job creation, and technological advancement while reinforcing India’s status as one of the world’s leading mobile phone manufacturing destinations.
FAQ
Q1. What is the Mobile Phone Manufacturing Scheme (MPMS)?
It is a ₹62,500 crore government incentive scheme launched to boost mobile phone manufacturing, exports, domestic value addition, and innovation in India.
Q2. What is the duration of the MPMS?
The scheme will run for five years, from FY 2026-27 to FY 2030-31.
Q3. What incentives are offered under the scheme?
Manufacturers can receive 2.25% to 5% incentives on eligible sales, up to 1.5% extra for domestic sourcing, and 3% additional incentive for Indian brands investing in design and R&D.
Q4. How many jobs will the scheme create?
The government estimates that the scheme will create around 60,000 direct jobs.
Q5. What is the production target under MPMS?
The scheme aims to achieve approximately ₹39 lakh crore worth of cumulative mobile phone production during its five-year tenure.
