Ø India Poised to See First Strong Indigenous
Mobile Brand by Mid-2027
Ø Mobile Phone Manufacturing Scheme to Generate
Around 60,000 Direct Jobs and Drive Cumulative Production of Approximately ₹39
Lakh Crore
·
Scheme
Outlay: MeitY has
notified the Mobile Phone
Manufacturing Scheme (MPMS) with a budget of ₹62,500 crore.
·
Scheme
Period: The scheme will operate for 5 years, from FY 2026-27 to FY 2030-31.
·
Main
Objectives: Increase global competitiveness, deepen
the domestic mobile manufacturing supply chain, raise Domestic Value Addition (DVA)
and strengthen manufacturing capabilities.
·
Indian
Brands: The scheme aims to promote Indian-owned mobile brands, indigenous
intellectual property, product design and R&D.
·
Target
Segment 1 (TS1): Provides incentives of 2.25% to 5% for mobile
phone manufacturing.
·
Target
Segment 2 (TS2): Provides 5% incentive for Indian brands, with an
additional 3% incentive
for Indian design and R&D.
·
Domestic
Sourcing Incentive: An additional incentive of up to 1.5% is available
for domestic sourcing of key components and sub-assemblies.
·
Localisation
Requirement: Components must be localised for at least
25% of total mobile phone
units manufactured in a financial year to qualify for the
additional sourcing incentive.
·
TS1
Eligibility: Manufacturers, including EMS providers,
must be registered in India and have a minimum ₹10,000-crore turnover in FY 2025-26.
·
TS2
Eligibility: Applicants must have a minimum ₹1,000-crore turnover in FY
2025-26 and qualify as an Indian brand.
·
Indian
Brand Criteria: The brand must be registered/incorporated
in India, have IP and
trademarks held in India, Indian management control, more than 51% Indian ownership,
and in-house R&D and design capabilities in India.
·
Brand-Based
Calculation: Sales and incentives will be calculated on a brand-wise basis.
·
PLI-LSEM
Successor: MPMS follows the completion of the PLI Scheme for Large Scale Electronics
Manufacturing, whose tenure ended on March 31, 2026.
·
Current
Manufacturing Position: India is the world's second-largest mobile phone
manufacturer by volume, with 99.2% of mobile phones used in India manufactured
domestically.
·
Export
Significance: Smartphones became India's largest single exported product category
in 2025, overtaking diesel fuel and cut diamonds.
·
Production
Target: Cumulative mobile phone production is
expected to reach approximately ₹39
lakh crore during the scheme period.
·
Employment: The
scheme is expected to generate around 60,000
direct jobs.
·
Strategic
Focus: MPMS seeks to increase Atmanirbharta, Indian ownership of technology and IP,
domestic component manufacturing, exports and India's integration into global
electronics value chains.
<Mobile
Phone Manufacturing Scheme (MPMS)>
[ABS News Service/22.08.2026]
The Ministry of Electronics and Information
Technology (MeitY) has notified the Mobile Phone Manufacturing
Scheme (MPMS), with a budgetary outlay of Rs 62,500 crore. The Scheme aims to increase
global competitiveness by further enhancing scale, deepening the mobile manufacturing
supply chain through higher Domestic Value Addition (DVA), and strengthening domestic
manufacturing capabilities. MPMS will also support Indian mobile phone brands to
achieve technological sovereignty, capture greater economic value, and encourage
Indian patents in design and R&D, while generating employment.
Union Minister for Electronics and Information
Technology Ashwini Vaishnaw said that the Mobile Phone
Manufacturing Scheme will provide a significant impetus to the development of Indian-owned
mobile brands, intellectual property and design. Emphasising the importance of genuine
Indian ownership, the Union Minister said that the design, intellectual property
and brand must be Indian-owned and capable of competing with the best products in
the respective market segment. He further stated that the Government will undertake
a meticulous evaluation to ensure that the intellectual property is genuinely Indian-owned,
while non-fiscal and other support measures will be developed in consultation with
the industry.
Background
The Prime Minister's Make in India vision
has propelled electronics manufacturing to grow seven-fold and exports eleven-fold
since FY 2014-15. The electronics manufacturing sector has emerged as a major employer,
especially for young men and women from far-flung villages, with several manufacturing
plants employing more than 5,000 people at a single location, and employment at
some facilities reaching 20,000. This growth has been primarily driven by mobile
phone manufacturing, with mobile phones now constituting a major share of India’s
electronics production and exports and playing a critical role in strengthening
India’s position in global value chains.
India is now the world's 2nd largest mobile
phones manufacturer by volume, with 99.2% of the mobile phones being used in India
being Made in India today. Smartphone’s emerged as India's single largest exported
product category in 2025, surpassing traditional leading export items such as diesel
fuel and cut diamonds.
The Production Linked Incentive Scheme
for Large Scale Electronics Manufacturing (PLI-LSEM), one of the most successful
PLI Schemes, played a catalytic role in establishing India as a global hub for mobile
phone manufacturing and exports; its tenure ended on 31st March 2026. To sustain
this growth momentum and further scale up production of mobile phones, the Government
has now notified the Mobile Phone Manufacturing Scheme (MPMS).
Salient Features of MPMS
The Scheme has two Target Segments:
·
Target Segment 1 (TS1): Incentivizing mobile phone manufacturing
·
Target Segment 2 (TS2): Supporting Indian mobile phone brands
The Scheme tenure shall be 5 years, i.e.
from FY 2026-27 to FY 2030-31. Applicants under TS2 may be granted a gestation period
of 1 year. For TS1, the Scheme provides a differentiated incentive ranging from
2.25% to 5%. For TS2, the Scheme provides incentive @5% for Indian Brands and an
additional incentive of 3% for Indian design and R&D. Moreover, the Scheme provides
non-fiscal support to Indian Brands.
Further, an additional incentive of up
to 1.5% shall be provided for domestic sourcing of key components/sub-assemblies
for both the target segments under the Scheme. Applicants under the Scheme shall
be mobile phone manufacturers, including Electronics Manufacturing Services (EMS)
providers which are registered in India. The sales and incentives payable to the
applicant shall be computed on a brand-wise basis.
Eligibility Criteria
Eligibility under TS1 extends to mobile
phone manufacturers, including Electronics Manufacturing Services (EMS) companies,
registered in India with a minimum turnover of Rs 10,000 crore in FY 2025-26. Existing
brands must meet an annual threshold of Rs 5,000 crore every year over and above
FY 2025-26 sales. A new brand becomes eligible only after achieving total annual
sales of Rs 10,000 crore in India, and must thereafter meet the year-on-year threshold
sales requirement of Rs 5,000 crore.
Eligibility under TS2 extends to mobile
phone manufacturers, including EMS companies, registered in India with a minimum
turnover of Rs 1,000 crore in FY 2025-26, and satisfying all criteria of an 'Indian
Brand' , registered/incorporated in India; IP and trademark held within India; management
control with Indian citizens; more than 51% shareholding held by Indian citizens;
and in-house R&D and design capabilities in India.
Additional Incentive on Domestic Sourcing
To further accelerate domestic manufacturing
and ensure Atmanirbharta in the Indian mobile phone manufacturing
ecosystem, the Scheme provides an additional incentive of up to 1.5% for the domestic
sourcing of key components and sub-assemblies
provided such components are localised for a minimum of 25% of total mobile
phone units manufactured in a financial year. This additional incentive is designed
to reward and reinforce genuine, deep-rooted domestic manufacturing.
Expected Outcomes
During the Scheme tenure, cumulative mobile
phone production in the country is expected to reach approximately Rs 39 lakh crore,
with a significant increase in mobile phone exports. MPMS is also expected to generate
around 60,000 direct jobs, contributing to economic growth, employment generation,
and strengthening India's position as a global electronics manufacturing hub.