The government has opened the Rs 62,500-crore Mobile Phone Manufacturing Scheme with effect from April 1, 2026.
Eligible manufacturers can receive production-linked incentives along with additional benefits for sourcing components domestically.
Highlights
- Government launches Rs 62,500-crore Mobile Phone Manufacturing Scheme (MPMS).
- Mobile manufacturers with Rs 10,000 crore FY26 turnover can qualify for the scheme.
- Indian-owned companies and EMS firms can qualify with Rs 1,000 crore turnover.
- The scheme will operate for five years starting FY27.
- Base incentive rates will range from 2.75% to 2.25% during the scheme period.
- Domestic component sourcing can attract an additional incentive of up to 1.5%.
The government has officially opened its Rs 62,500-crore Mobile Phone Manufacturing Scheme (MPMS), offering production-linked incentives to eligible mobile phone manufacturers and electronics contract manufacturers in a fresh push to expand domestic electronics production.
According to the guidelines issued on Friday, mobile phone companies, including electronic manufacturing services (EMS) firms, with a turnover of at least Rs 10,000 crore in FY26 will be eligible to participate in the scheme.
The eligibility threshold will be lower for companies with majority Indian ownership. Mobile phone companies and EMS firms with at least 51% Indian ownership will be eligible if they recorded a turnover of Rs 1,000 crore in FY26.
The five-year scheme has been divided into two broad parts — incentivising mobile phone manufacturing and providing support to Indian mobile phone brands.
Union Electronics and Information Technology Minister Ashwini Vaishnaw said the scheme officially opened on Friday and will be effective retrospectively from April 1, 2026. Applicants with majority Indian ownership may also be granted a one-year gestation period.
Existing mobile phone brands will have to meet annual incremental sales targets to claim benefits. They will need sales of at least Rs 5,000 crore above their FY26 turnover in FY27.
The incremental sales threshold will rise to Rs 10,000 crore in FY28, Rs 15,000 crore in FY29, Rs 20,000 crore in FY30 and Rs 25,000 crore in FY31.
For new mobile phone brands, eligibility will begin after they achieve total annual sales of at least Rs 10,000 crore in India.
Incentives will be calculated by multiplying eligible annual sales by the applicable incentive rate. The rate has been fixed at 2.75% for FY27 and FY28, 2.5% for FY29 and FY30, and 2.25% for FY31.
Companies could receive an additional incentive of up to 1.5% for domestically sourcing components such as display modules, batteries and USB cables.
The scheme will be implemented through a project management agency. The Ministry of Electronics and Information Technology will separately issue detailed guidelines for its implementation.
