Cabinet approves Mobile Phone Manufacturing Scheme (MPMS)

• Dushyant Sharma
• 16 Jul 2026
• 82 Views

The Union Cabinet, led by Prime Minister Shri Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a total budget of Rs. 62,500 crore (Rupees Sixty-Two Thousand Five Hundred Crore Only). The scheme is expected to boost the production of mobile phones in the country. 

Features of Mobile Phone Manufacturing Scheme

The key features of the mobile phone manufacturing scheme (MPMS) are as follows:

• The Mobile Phone Manufacturing Scheme 2026 aims to increase mobile phone production, enhance domestic value addition, strengthen supply chain resilience and improve global competitiveness. 

• The Government has initiated this scheme so as to build Indian brands, ensure technological sovereignty, capture significant economic value and create Indian patents related to design and research and development (R&D). 

• The scheme will be in effect for a period of five years from the financial year 2026 - 27 to 2030 - 31. The MPMS provides incentives on the basis of eligible sales for manufacturing mobile phones in India. It has differentiated rates ranging from 2.25% to 5%. 

• An additional incentive of up to 1.5% is available for domestic sourcing of key components as well as sub-assemblies. 

• Furthermore, to promote the development of Indian brands, an extra incentive of 3% on eligible sales is offered by the government for product design and R&D.

Anticipated Impact of the Scheme

It is anticipated that during the tenure of the scheme, the country’s cumulative mobile phone production will reach about Rs. 39,00,000 crore with a major rise in the mobile phones’ exports. Another expectation from the scheme is generation of nearly 60,000 direct jobs. This would contribute to economic growth, job creation and strengthen India’s position as a global leader in electronics manufacturing. 

Context

The Prime Minister's Make in India vision has significantly boosted the electronics manufacturing sector. It has led to a sevenfold increase in growth and an elevenfold rise in exports since the fiscal year 2014 - 15. This sector has become quite a major source of employment, particularly when it comes to young men and women from remote villages. Some plants employ more than 5,000 individuals at a single location. Mobile phone manufacturing has been the primary driver of this growth. It has established itself as cornerstone of electronics manufacturing ecosystem in India. 

India has now become the world's second largest mobile phone manufacturer by volume. Approx. 99.2% of mobile phones used in the country are actually being produced domestically. In 2025, smartphones emerged as largest export product category from India. It surpassed traditional leaders like diesel fuel and cut diamonds. 

Mobile phones now make up a major portion of electronics production and exports of India. Their role in enhancing the country’s position in global value chains is indispensable. The Production Linked Incentive Scheme for Large Scale Electronics Manufacturing has played a transformative role in positioning India as a global hub for manufacture and export of mobile. The tenure of this scheme ended on 31 March 2026. 

Source: Press Information Bureau (PIB)