MPMS with a budgetary outlay of ₹62,500 crore to strengthen India’s mobile phone manufacturing ecosystem and enhance its global competitiveness

Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore to strengthen India’s mobile phone manufacturing ecosystem and enhance its global competitiveness.

Mobile Phone Manufacturing Scheme (MPMS)

¨     It is a Central Sector Scheme with a budgetary outlay of ₹62,500 crore.

¨     The scheme will be implemented for five years, from FY 2026–27 to FY 2030–31.

It aims to

¨     Scale up mobile phone production.

¨     Deepen domestic value addition.

¨     Strengthen supply chain resilience.

¨     Enhance global competitiveness in electronics manufacturing.

¨     Build globally competitive Indian mobile phone brands.

¨     Promote technological sovereignty through indigenous design, research & development (R&D), and patent creation.

The scheme provides

¨     2.25%–5% incentive on eligible sales of mobile phones manufactured in India.

¨     Up to 1.5% additional incentive for domestic sourcing of key components and sub-assemblies.

¨     3% additional incentive on eligible sales for Indian brands undertaking product design and R&D.

During its tenure, the scheme is expected to

¨     Cumulative mobile phone production of about ₹39 lakh crore.

¨     Significant increase in mobile phone exports.

¨     Creation of around 60,000 direct jobs.

The scheme succeeds the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), whose tenure ended on 31 March 2026. It aims to build on its achievements by promoting higher domestic value addition and a stronger component ecosystem.

India’s Status in Mobile Manufacturing

¨     India is the world’s second-largest mobile phone manufacturer by volume.

¨     99.2% of mobile phones used in India are manufactured domestically.

¨     Mobile phone manufacturing has become the anchor of India’s electronics manufacturing ecosystem.

Under the Make in India initiative:

¨     Electronics manufacturing has grown seven-fold since FY 2014–15.

¨     Electronics exports have increased eleven-fold during the same period.

¨     Smartphones became India’s largest export product category in 2025, surpassing traditional exports such as diesel fuel and cut diamonds.

According to MeitY:

¨     Mobile phone production increased from ₹18,900 crore (FY 2014–15) to ₹6.27 lakh crore (FY 2025–26).

¨     Mobile phone exports increased from ₹1,566 crore to ₹2.60 lakh crore during the same period.

¨     Mobile phones have risen from being India’s 153rd largest export item in FY 2014–15 to the largest export product in FY 2025–26.

Significance

¨     Strengthens Manufacturing Ecosystem: The scheme promotes a shift from mobile phone assembly to higher domestic value addition by strengthening the local manufacturing ecosystem.

¨     Enhances Supply Chain Resilience: It encourages domestic sourcing of key components and sub-assemblies, reducing import dependence and building resilient supply chains.

¨     Promotes Investment & Innovation: The scheme provides long-term policy certainty to attract fresh investments while encouraging indigenous design, R&D and patent creation.

¨     Supports Indian Brands: It enables Indian mobile phone brands and Original Design Manufacturers (ODMs) to move beyond contract manufacturing and develop globally competitive products.

¨     Strengthens Global Competitiveness: The scheme enhances India’s integration into Global Value Chains (GVCs) by building advanced manufacturing capabilities, engineering expertise and supplier networks.

¨     Boosts Economy & Employment: It is expected to increase exports, generate employment, and contribute to overall economic growth.