The Government of India has formally notified a ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS), marking a fresh push to strengthen domestic electronics manufacturing, increase local value addition and encourage the development of Indian-owned technology brands.
The five-year scheme will operate from financial year 2026-27 to 2030-31. According to the Ministry of Electronics and Information Technology, the programme is expected to generate around 60,000 direct jobs and drive cumulative mobile-phone production of approximately ₹39 lakh crore during its tenure.
Under the scheme, manufacturers will receive incentives ranging from 2.25% to 5% of eligible sales. Companies can receive an additional incentive of up to 1.5% for sourcing key components and sub-assemblies domestically. Indian brands that undertake design and research and development within the country can also receive an additional 3% incentive.
The government says the objective is not simply to increase the number of phones manufactured in India, but to deepen India’s role in the global electronics value chain. The policy places particular emphasis on domestic component production, design capabilities, research and development, intellectual property and Indian ownership.
Electronics and IT Minister Ashwini Vaishnaw has said the government expects India to see its first strong indigenous mobile-phone brand by around mid-2027. The government is also working with three Indian companies that could develop into competitive smartphone brands over the next 10 to 14 months.
The new programme builds on the earlier Production Linked Incentive scheme for large-scale electronics manufacturing, whose tenure ended on March 31, 2026. Government data says 99.2% of mobile phones used in India are now manufactured domestically, while India has become the world’s second-largest mobile-phone manufacturer by volume.
The announcement comes as India seeks to move from large-scale assembly towards greater control over technology, components, design and intellectual property. The government expects the initiative to strengthen India’s position as a global electronics manufacturing and export hub.
