Mobile Phone Manufacturing Scheme
What’s in the news?
- The Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) to further expand domestic mobile phone production, increase value addition, strengthen supply chains and enhance India’s competitiveness in global electronics manufacturing.
- The new scheme will be implemented over five years from FY 2026-27 to FY 2030-31.
- India is now the world’s second-largest mobile phone manufacturer by volume, with 99.2 per cent of the mobile phones used in the country being manufactured domestically.
- Smartphones have become India’s largest export product category in 2025, surpassing traditional export leaders such as diesel fuel and cut diamonds.
Benefits under the Scheme
- Under the scheme, manufacturers will receive incentive support on eligible sales of mobile phones produced in India at differentiated rates ranging from 2.25 per cent to 5 per cent.
- Manufacturers will also receive an additional incentive of up to 1.5 per cent for increased domestic sourcing of key components and sub-assemblies.
- To encourage indigenous innovation, the scheme offers an additional 3 per cent incentive on eligible sales for companies investing in product design, research and development, and the creation of Indian brands.
- The scheme is expected to generate cumulative mobile phone production worth around ₹39 lakh crore during its tenure, significantly increase exports and create approximately 60,000 direct jobs.