New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore, aiming to strengthen India’s position as a global electronics manufacturing hub and enhance domestic value addition.
The scheme will be implemented over a five-year period from FY 2026-27 to FY 2030-31. It seeks to scale up mobile phone production, deepen localisation of components, strengthen supply chain resilience and improve the global competitiveness of India’s electronics manufacturing sector.
Under the scheme, manufacturers will receive incentive support ranging from 2.25% to 5% on eligible sales of mobile phones produced in India. An additional incentive of up to 1.5% will be offered to companies that source key components and sub-assemblies domestically.
To encourage innovation and indigenous technology development, the government has also announced an additional 3% incentive on eligible sales for companies investing in product design, research and development, with the objective of building globally competitive Indian mobile phone brands.
According to the government, the scheme is expected to generate cumulative mobile phone production worth around ₹39 lakh crore during its tenure, while significantly boosting exports. It is also projected to create nearly 60,000 direct jobs, contributing to employment generation and economic growth.
The Centre said the initiative builds on the success of the Make in India programme, under which electronics manufacturing has grown sevenfold and electronics exports have increased elevenfold since FY 2014-15. India has also emerged as the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country now being manufactured domestically.
The government noted that smartphones became India’s largest exported product category in 2025, overtaking traditional export items such as diesel fuel and cut diamonds, underscoring the growing importance of the electronics sector in the country’s export basket.
The newly approved MPMS succeeds the Production Linked Incentive (PLI) Scheme for Large-Scale Electronics Manufacturing, which concluded on March 31, 2026, and is expected to further accelerate India’s ambitions of becoming a global manufacturing and innovation hub for mobile devices.
