The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to the Mobile Phone Manufacturing Scheme (MPMS) with a budget of Rs 62,500 crore. This initiative, spanning five years from FY2026-27 to FY2030-31, aims to bolster local production, elevate exports, and solidify India’s status as a global electronics manufacturing center.
Manufacturers participating in the MPMS will receive incentives on eligible sales of mobile phones made in India, with varying rates from 2.25% to 5%. An additional incentive of up to 1.5% is also on offer, tied to the domestic sourcing of crucial components and sub-assemblies.
To foster homegrown brands, manufacturers can qualify for an extra 3% incentive on eligible sales for product design and research and development. The scheme is anticipated to generate approximately Rs 39 lakh crore in cumulative mobile phone production during its duration, while substantially boosting handset exports.
Moreover, the MPMS is expected to create around 60,000 direct jobs, contributing to both employment opportunities and economic advancement. Notably, this initiative builds upon the success of the Make in India program, which has seen a seven-fold growth in electronics manufacturing and an eleven-fold increase in exports since FY2014-15.
India currently stands as the world’s second-largest mobile phone manufacturer by volume, with almost all mobile phones used in the country being domestically produced. The government also pointed out that smartphones have become India’s primary exported product category in 2025, surpassing traditional exports like diesel fuel and cut diamonds.
Furthermore, the MPMS replaces the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which concluded on March 31. The government acknowledged the pivotal role played by the PLI scheme in positioning India as a global hub for mobile phone production and exports.
