India unveils a five-year, Rs 62,500 crore Mobile Phone Manufacturing Scheme aimed at boosting local design, components, and brand ownership, marking a strategic shift towards indigenous technology and value addition.
India has notified a Rs 62,500 crore Mobile Phone Manufacturing Scheme as it seeks to extend the gains of its electronics push beyond final assembly and into domestic design, components and brand ownership. The five-year programme runs from FY 2026-27 to FY 2030-31 and is intended to lift mobile-phone output, deepen local sourcing and increase value added within the country, according to the Ministry of Electronics and Information Technology.
The plan arrives after the earlier Production Linked Incentive Scheme for Large Scale Electronics Manufacturing ended on March 31, 2026. Government figures say that since FY 2014-15, electronics manufacturing has grown seven-fold and electronics exports have risen eleven-fold, with smartphones becoming India’s largest export category in 2025. Officials are presenting MPMS as the next phase of that expansion, with a sharper focus on Indian-owned intellectual property, product design and indigenous technology.
The scheme is split into two tracks. The first covers mobile-phone manufacturing and offers differentiated incentives of 2.25 per cent to 5 per cent, plus as much as 1.5 per cent extra for domestic sourcing of key components and sub-assemblies. The second is aimed at Indian brands, which can receive a 5 per cent incentive and a further 3 per cent for Indian design and research and development. The ministry says applicants under the Indian-brand track will be examined closely to ensure that ownership of the brand, trademarks and intellectual property is genuinely Indian, with more than 51 per cent shareholding held by Indian citizens and management control also in Indian hands.
The government says the scheme could support cumulative mobile-phone production of about Rs 39 lakh crore and create around 60,000 direct jobs, while also spreading work into logistics, packaging, design and component manufacturing. Eligible manufacturers must be registered in India, including electronics manufacturing services providers, and incentives will be calculated on a brand-wise basis. Officials say the broader aim is to move India further up the electronics value chain, from a manufacturing base dominated by assembly to one with stronger domestic sourcing, R&D and branded product development.
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