Cabinet Approves Rs 62,500 Crore Mobile Phone Manufacturing Scheme

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore. The scheme aims to expand mobile phone production in India, increase domestic value addition, strengthen supply chains, and improve the country’s global competitiveness in electronics manufacturing.

The MPMS will remain in force for five years, from FY2026-27 to FY2030-31. It offers incentive support on eligible sales for mobile phone manufacturing at rates ranging from 2.25% to 5%. The scheme also provides an additional incentive of up to 1.5% for domestic sourcing of key components and sub-assemblies, along with an extra 3% incentive on eligible sales for design and research and development to support Indian mobile phone brands.

According to the government, the scheme is expected to help India achieve cumulative mobile phone production of around ₹39,00,000 crore during its tenure. It is also projected to generate nearly 60,000 direct jobs while boosting mobile phone exports and strengthening India’s position as a global electronics manufacturing hub.

India has become the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country now being manufactured domestically. Smartphones also emerged as India’s largest exported product category in 2025, surpassing diesel fuel and cut diamonds, and now account for a significant share of the country’s electronics production and exports.

The government said the Mobile Phone Manufacturing Scheme builds on the progress made under the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which ended on March 31, 2026. The new scheme is intended to further scale up manufacturing, promote Indian brands, and support technological development through design and R&D.