The Ministry of Electronics and Information Technology has launched a Mobile Phone Manufacturing Scheme (MPMS) with a budget of ₹62,500 crore. Its objective is to boost domestic mobile production, thereby enhancing global competitiveness, strengthening supply chains, and creating new employment opportunities. The scheme will encourage Indian brands to achieve technological self-reliance and advance in research.
This five-year plan, which will be implemented from the 2026-27 to FY 2030-31, focuses on expanding the manufacturing sector, strengthening the domestic supply chain, and assisting Indian mobile phone brands in developing indigenous technology, intellectual property, and design capabilities.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw stated that this scheme would provide a significant boost to Indian-owned mobile brands, intellectual property, and product design. He emphasized that Indian ownership of brands, designs, and IP is essential for companies to compete globally. The government will verify Indian ownership and formulate support measures in collaboration with the industry.
Growth in Electronics Manufacturing
Since the launch of the ‘Make in India’ initiative, India’s electronics manufacturing sector has witnessed a seven-fold increase, while electronics exports have grown eleven-fold. This expansion has created new employment opportunities, particularly for youth in rural areas. Many large plants are employing between 5,000 and 20,000 people.
India is now the world’s second-largest mobile phone manufacturer. 99.2% of the mobile phones used in the country are manufactured in India. In 2025, smartphones emerged as India’s largest export product, surpassing diesel fuel and cut diamonds.
The PLI-LSEM scheme, launched for large-scale electronics manufacturing, played a pivotal role in transforming India into a global hub for mobile phone manufacturing and exports. Its tenure concluded on March 31, 2026. To maintain the pace of growth and boost mobile phone production, the government has now launched the ‘Mobile Phone Manufacturing Scheme’ (MPMS).
Key Features of MPMS
MPMS has two target segments: the first, Target Segment 1 (TS1), focuses on promoting mobile phone manufacturing, while Target Segment 2 (TS2) aims to support Indian mobile phone brands. Under TS1, the scheme offers incentives ranging from 2.25% to 5%. Under TS2, Indian brands will receive a 5% incentive, along with an additional 3% incentive for Indian design and Research and Development (R&D).
This scheme offers an additional incentive of up to 1.5% for the domestic sourcing of key components and sub-assemblies. Eligible applicants include mobile phone manufacturers registered in India, including EMS providers, with sales and incentives calculated on a brand-wise basis.
For applicants under TS2, the scheme also provides a one-year gestation period, giving companies additional time to commence operations and meet the scheme’s requirements.
An additional incentive of up to 1.5 per cent will be available to both target segments for domestic sourcing of key components and sub-assemblies. Applicants must be mobile phone manufacturers registered in India, including Electronics Manufacturing Services (EMS) providers. Sales and incentives under the scheme will be calculated on a brand-wise basis. Applicants under TS2 may also be granted a one-year gestation period.
Eligibility Criteria
TS1 Eligibility: Mobile phone manufacturers and EMS companies registered in India will be eligible under TS1, provided they achieve a turnover of at least ₹10,000 crore in the 2025-26 financial year. Existing brands will be required to achieve incremental annual sales of ₹5,000 crore, whereas new brands will become eligible for this target after reaching annual sales of ₹10,000 crore.
TS2 Eligibility: Mobile phone manufacturing companies registered in India (including EMS companies) with a turnover of at least ₹1,000 crore in FY 2025-26 are eligible for this, provided they meet the criteria for an ‘Indian brand’—such as Indian ownership of IP and trademarks, more than 51% Indian equity, management control held by Indian citizens, and in-house R&D and design capabilities within India.
This scheme offers an additional incentive of up to 1.5% for the domestic sourcing of key components and sub-assemblies, provided they are produced locally for at least 25% of the total mobile phones manufactured annually. Its objective is to boost domestic manufacturing and strengthen ‘Atmanirbhar Bharat’ (Self-Reliant India) within the mobile phone ecosystem.
Expected Outcomes
It is expected that the total production of mobile phones will rise to approximately ₹39 lakh crore during the tenure of the MPMS, leading to a significant increase in exports as well.
This scheme is estimated to generate approximately 60,000 direct jobs, thereby boosting economic growth and strengthening India’s position as a global electronics manufacturing hub.
(PIB)
