The five-year incentive scheme aims to boost domestic production, exports and smartphone manufacturing.
Key Highlights
- Union Cabinet approved the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS).
- The scheme will run from FY2026-27 to FY2030-31.
- Incentives range from 2.25% to 5% on eligible mobile phone sales.
- Additional incentives will be offered for domestic sourcing and design-led R&D.
- The scheme is expected to generate around 60,000 direct jobs.
New Delhi: The Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore to strengthen India’s electronics manufacturing ecosystem and expand its position as a global smartphone production hub.
The scheme will remain operational for five years, from FY2026-27 to FY2030-31, and provides incentive support ranging from 2.25% to 5% on eligible mobile phone sales manufactured in India.
Manufacturers will also receive an additional incentive of up to 1.5% for increasing domestic sourcing of key components and sub-assemblies. Indian brands investing in product design and research & development will be eligible for an additional 3% incentive.
The government expects the scheme to generate cumulative mobile phone production worth around ₹39 lakh crore during its tenure while creating nearly 60,000 direct jobs.
India has emerged as the world’s second-largest mobile phone manufacturer by volume, with over 99% of mobile phones sold in the country now being manufactured domestically. Smartphones also became India’s largest export product category in 2025, supported by the earlier Production Linked Incentive (PLI) scheme, which concluded in March 2026.
