Five-year Mobile Phone Manufacturing Scheme aims to nearly double production, boost exports and create a stronger Indian mobile ecosystem
New Delhi : The Government of India has formally launched the Mobile Phone Manufacturing Scheme (MPMS) with a total outlay of ₹62,500 crore, aimed at strengthening India’s mobile phone manufacturing ecosystem and creating globally competitive Indian brands.
The five-year scheme will be implemented from April 1, 2026, through 2030-31. Applications under the scheme will remain open on an ongoing basis.
The programme has two major components. The first focuses on supporting large-scale mobile phone manufacturing, while the second is specifically designed to promote Indian brands, indigenous design, research and intellectual property (IP).
Production Targeted to Nearly Double
Union Minister for Electronics and Information Technology Ashwini Vaishnaw said India’s mobile manufacturing sector has achieved significant growth under the previous Production Linked Incentive (PLI) scheme.
According to the minister, cumulative mobile phone production under the earlier programme reached approximately ₹20 lakh crore. Under the new scheme, the government aims to take production to nearly double that level, with an estimated cumulative production of around ₹39 lakh crore.
The government has also set an export target of ₹15 lakh crore under the new initiative.
The scheme is expected to generate approximately 60,000 direct jobs, while also strengthening employment opportunities across the wider electronics manufacturing ecosystem.
Special Incentives for Indian Brands
One of the most important features of the new scheme is its emphasis on developing Indian-owned and Indian-designed mobile brands capable of competing in international markets.
Vaishnaw said India has already established a strong mobile manufacturing base and the next priority is to ensure that Indian brands achieve global recognition.
Eligible Indian brands can receive an incentive of up to 5%, with additional incentives linked to the use of domestic components and Indian design and research capabilities.
Companies may receive an additional 1.5% incentive for using domestically manufactured components, while an additional 3% incentive can be available for the use of Indian design and research.
Who Can Qualify as an Indian Brand?
The scheme lays down several conditions for a company to qualify as an Indian brand.
Key requirements include:
- The company must be registered in India.
- Its trademark and intellectual property must be held in India.
- The management must be under the control of Indian citizens.
- More than 51% of the company’s shareholding must be held by Indian individuals.
- The company must undertake its own design and research activities in India.
The government has also stressed that merely copying existing products or designs will not qualify.
Vaishnaw said the design must be original and developed in India, with the government expected to scrutinise eligibility and compliance.
The minister indicated that around three companies could potentially develop into Indian mobile brands over the next 10 to 14 months, with the possibility of a strong Indian mobile brand emerging in the market by the middle of next year.
Focus on Domestic Components and Value Addition
The first component of the scheme is aimed at companies manufacturing mobile phones in India, including electronics manufacturing services (EMS) companies.
Such companies will be subject to minimum turnover requirements, while incentives will be linked to sales and are expected to reduce progressively each year.
The scheme also provides incentives for increasing domestic value addition.
Companies manufacturing components such as displays, cameras, batteries and USB cables in India can qualify for an additional incentive of up to 1.5%.
To qualify for this benefit, at least 25% of the mobile phones sold annually must incorporate the specified locally manufactured components.
Shift from Production to Value Creation
The new scheme represents a broader approach compared with the earlier PLI programme.
According to the government, the previous PLI scheme primarily focused on increasing production, whereas the new initiative gives separate incentives for:
- Domestic value addition
- Indian intellectual property
- Indigenous design
- Research and development
- Creation of Indian brands
The current level of domestic value addition in mobile manufacturing is estimated at around 25% to 28%, and the government intends to increase it further.
India’s Electronics Manufacturing Has Expanded Rapidly
Electronics Secretary S. Krishnan highlighted the transformation of India’s electronics manufacturing sector over the past decade.
According to the government, electronics manufacturing has increased sevenfold over the last ten years, while electronics exports have increased elevenfold.
Mobile phone production has increased around 33 times, while mobile phone exports have grown approximately 166 times.
India is now the world’s second-largest mobile phone manufacturing country, and around 99.2% of mobile phones used in India are manufactured domestically.
Electronics Exports Reach $48 Billion
India’s electronics exports have also witnessed a sharp rise.
Electronics exports increased from approximately $5.4 billion in 2014-15 to around $48 billion in 2025-26.
Mobile phones have now emerged as India’s largest export item, reflecting the country’s rapidly expanding electronics manufacturing capabilities.
The government also stated that investment under the earlier PLI programme was nearly three times higher than the original target, while production and exports also exceeded the targets set under the scheme.
The wider mobile manufacturing ecosystem has generated employment for approximately 12 lakh people, according to government figures.
Mobile Manufacturing to Support Other Industries
The government expects the capabilities developed through mobile phone manufacturing to benefit several other sectors.
Skills, technologies and supply-chain capabilities developed in the mobile ecosystem can be utilised in industries such as:
- Automobiles
- Laptops and computers
- Televisions
- Medical equipment
- Electric vehicles
- Other advanced electronics
Vaishnaw said the broader objective is to increase the amount of manufacturing carried out within India and create opportunities for MSMEs, component manufacturers, material suppliers and other businesses in the supply chain.
India’s Next Electronics Manufacturing Phase
The launch of the ₹62,500-crore Mobile Phone Manufacturing Scheme marks a shift in India’s electronics manufacturing strategy—from simply increasing production volumes to building domestic value, intellectual property, original designs and globally competitive Indian brands.
With the government targeting nearly ₹39 lakh crore in production, ₹15 lakh crore in exports and greater domestic value addition, the scheme is expected to play a significant role in shaping India’s next phase of electronics manufacturing and strengthening the country’s position in the global mobile phone supply chain.
