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The Union Cabinet, chaired by the Prime Minister, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ?62,500 crore to strengthen India's position as a global mobile manufacturing hub.

About the Mobile Phone Manufacturing Scheme (MPMS)

• The Mobile Phone Manufacturing Scheme (MPMS) is a Central Sector Scheme aimed at scaling up mobile phone manufacturing, increasing domestic value addition, strengthening supply chain resilience, and enhancing India's global competitiveness in electronics manufacturing.
• The scheme seeks to promote technological self-reliance by encouraging the development of Indian brands, expanding design and research & development (R&D) capabilities, and generating indigenous intellectual property.
• The scheme will be implemented for five years, from FY 2026–27 to FY 2030–31.

Key Features

• The scheme provides performance-linked incentives on eligible sales of mobile phones manufactured in India at differentiated rates ranging from 2.25% to 5%.
• To promote localisation, it offers an additional incentive of up to 1.5% for manufacturers sourcing key components and sub-assemblies domestically, thereby encouraging the development of a robust domestic supply chain.
• To strengthen indigenous innovation, the scheme also provides an additional 3% incentive on eligible sales for Indian brands undertaking product design and R&D activities in India.

Objectives

The scheme aims to:

• Scale up mobile phone manufacturing in India.
• Increase domestic value addition and localisation.
• Build resilient domestic electronics supply chains.
• Promote Indian brands and indigenous innovation.
• Strengthen design, R&D and patent creation.
• Enhance India's global competitiveness in the electronics sector.
• Advance the vision of Atmanirbhar Bharat and technological sovereignty.