Cabint approves Rs 62,500-Cr mobile phone manufacturing scheme
New Delhi, July 15 (TNT): 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 to boost domestic production, value addition and exports of mobile phones.
The scheme, which will be implemented over five years from FY 2026-27 to FY 2030-31, aims to scale up mobile phone manufacturing, strengthen the domestic supply chain, enhance global competitiveness and promote Indian brands through design and research and development.
Under the scheme, manufacturers will receive incentive support ranging from 2.25 per cent to 5 per cent on eligible sales of mobile phones manufactured in India.
An additional incentive of up to 1.5 per cent will be provided for domestic sourcing of key components and sub-assemblies, while Indian brands undertaking product design and research and development will be eligible for an additional 3 per cent incentive on eligible sales.
The government expects cumulative mobile phone production to reach around ₹39 lakh crore during the scheme period, with a significant increase in exports.
The scheme is also projected to generate around 60,000 direct jobs, contributing to employment generation and strengthening India’s position as a global electronics manufacturing hub.
The government said India’s electronics manufacturing has expanded seven-fold and electronics exports have increased eleven-fold since 2014-15 under the Make in India initiative.
India has emerged as the world’s second-largest mobile phone manufacturer by volume, with 99.2 per cent of mobile phones used in the country now being manufactured domestically.
The government also noted that smartphones became India’s largest exported product category in 2025, overtaking traditional exports such as diesel fuel and cut diamonds.
The newly approved scheme succeeds the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing, which concluded on March 31, 2026.
TNT KS
