The union cabinet chaired by the prime minister has approved the mobile phone manufacturing scheme (MPMS) with a budgetary outlay of Rs 625 billion. To further scale up the production, deepen domestic value addition, strengthen supply chain resilience, enhance global competitiveness, the government has launched the MPMS.
MPMS scheme also aims at building Indian brands to achieve technological sovereignty, capture large economic value and create Indian patents in design and research and development (R&D). The scheme tenure shall be five years i.e. from financial year 2026-27 (FY27) to FY31.
The scheme provides incentive support on eligible sales for manufacturing of mobile phones in India at differentiated rates ranging from 2.25 per cent to 5 per cent. Scheme also provides additional incentive of up to 1.5 per cent linked to domestic sourcing of key components/ sub-assemblies. For building Indian brands, an additional incentive at 3 per cent on eligible sales for design and R&D of the product.
During the scheme tenure, the cumulative mobile phone production in the country is expected to reach approximately Rs 39 trillion with significant increase in exports of mobile phones. The scheme is also expected to generate around 60,000 direct jobs thereby contributing to economic growth, employment generation and strengthening India’s position in global electronics manufacturing hub.