Why in News?
The Ministry of Electronics and Information Technology (MeitY) has notified the Mobile Phone Manufacturing Scheme (MPMS) with a total outlay of ₹62,500 crore. The scheme aims to strengthen mobile phone manufacturing in India, increase domestic value addition and encourage the development of Indian-owned mobile brands.
Key Highlights
- The scheme has a total outlay of ₹62,500 crore.
- It will be implemented for five years, from FY 2026–27 to FY 2030–31.
- The scheme is expected to generate cumulative mobile phone production of around ₹39 lakh crore.
- It is expected to create around 60,000 direct jobs and the focus is on increasing domestic value addition and developing stronger local supply chains.
- The scheme also aims to encourage Indian-owned mobile brands, domestic design and R&D.
- An additional incentive of up to 1.5% will be available for domestic sourcing of key components.
- India is currently the world's second-largest mobile phone manufacturer by volume.
- Around 99.2% of mobile phones used in India are manufactured domestically.
Two Target Segments Under the Scheme
The Mobile Phone Manufacturing Scheme has been divided into two segments.
- Mobile Phone Manufacturing: The first segment focuses on expanding the scale of mobile phone manufacturing in India. Eligible manufacturers, including Electronics Manufacturing Services (EMS) companies, will receive incentives ranging from 2.25% to 5%, depending on the applicable criteria.
- Indian Mobile Brands: The second segment focuses on promoting the growth of Indian-owned mobile phone brands. Eligible Indian brands will receive an incentive of 5%, along with an additional 3% incentive for Indian design and R&D.
Focus on Domestic Value Addition
- India has made significant progress in mobile phone manufacturing, but a considerable part of the value chain still depends on components and technologies sourced from outside the country.
- The MPMS aims to address this gap by encouraging domestic sourcing of components, Indian ownership, product design, research and development and intellectual property creation. The scheme therefore focuses not only on increasing the number of mobile phones manufactured in India but also on increasing the value generated within the country.
