Government Notifies ₹62,500 Crore Mobile Phone Manufacturing Scheme

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Key takeaways

The Ministry of Electronics and Information Technology (MeitY) notified the Mobile Phone Manufacturing Scheme (MPMS) with an outlay of ₹62,500 crore for FY 2026-27 to FY 2030-31.
The scheme aims to increase domestic value addition in mobile phone production from 23% to 35-40%.
Target Segment 1 offers sales incentives of 2.25% to 5% for large manufacturers, while Target Segment 2 provides a fixed 5% incentive for Indian brands.
Indian brands investing in domestic R&D receive an extra 3% incentive, and companies sourcing 25% of parts locally get up to a 1.5% bonus.
The MPMS is projected to create 60,000 direct jobs, drive ₹39 lakh crore in total production, and fetch over ₹15 lakh crore in exports.

The Ministry of Electronics and Information Technology (MeitY) officially notified the Mobile Phone Manufacturing Scheme (MPMS) with a total budget of ₹62,500 crore.
This new central scheme will run for five financial years, starting from FY 2026-27 to FY 2030-31.

The scheme provides production-linked financial rewards to encourage large-scale phone assembly, local component buying, and domestic design for Indian smartphone companies.
The Ministry of Electronics and Information Technology (MeitY) serves as the main government ministry overseeing this program.
The scheme will run for 5 years from FY 2026-27 to FY 2030-31, managed by a high-level committee to distribute payments.
It aims to transform India from a phone assembly base into a design and component manufacturing power, raising local value addition from 23% to 35-40%.

The scheme divides targets into two groups: Target Segment 1 offers 2.25% to 5% sales incentives for large makers, while Target Segment 2 gives Indian brands a fixed 5% incentive.
Indian brands get an extra 3% incentive if they invest in domestic research, product design, and local patent creation.
Manufacturers in both groups get a bonus incentive of up to 1.5% if they source at least 25% of key parts locally.
Target Segment 1 applicants must have a minimum turnover of ₹10,000 crore in FY 2025-26, while Indian brands in Target Segment 2 need only ₹1,000 crore.
Qualifying domestic brands must maintain over 51% shareholding and management control with Indian citizens, alongside local registration of trademarks and intellectual property.

The initiative combines components and semiconductors to boost India's full-stack electronics production, increasing domestic value addition from 23% toward 40%.
It is expected to create 60,000 direct jobs, generate ₹39 lakh crore in total production, and achieve over ₹15 lakh crore in exports.