NEW DELHI: In a bid to make India a global hub for mobile phone manufacturing, the government has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore. The scheme will be implemented over five years, from FY 2026-27 to FY 2030-31. Under the MPMS, manufacturers will receive incentives ranging from 2.25% to 5% on eligible sales of mobile phones made in India.
An additional incentive of up to 1.5% will be provided for sourcing key components and sub-assemblies domestically. Indian brands involved in product design and research and development (R&D) will also receive an extra 3% incentive on eligible sales. The government expects the scheme to help produce mobile phones worth around Rs 39 lakh crore during its five-year period. It is also expected to boost exports and create nearly 60,000 direct jobs, supporting economic growth and employment.
The MPMS follows the success of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which ended on March 31, 2026. According to the government, the Make in India initiative has helped electronics manufacturing grow seven times and exports increase eleven times since FY 2014-15.
India is now the world's second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country being made domestically. Smartphones also became India's largest export product in 2025, highlighting the growing importance of the mobile phone industry in the country's manufacturing and export sector.