New Delhi: Reaffirming its ambition to position India as a global electronics manufacturing hub, the Union Government on Friday officially notified the Mobile Phone Manufacturing Scheme (MPMS). With a substantial budgetary outlay of ₹62,500 crore, the five-year initiative aims to generate a staggering ₹39 lakh crore in cumulative mobile phone production by the financial year 2030-31.
The MPMS, which succeeds the highly successful Production Linked Incentive (PLI) scheme that concluded in March 2026, will come into effect on April 1, 2026. The new policy is designed to scale up handset production, deepen domestic supply chains through higher local value addition, and actively support the development and global expansion of homegrown Indian smartphone brands.
According to the Ministry of Electronics and Information Technology (MeitY), the scheme offers differentiated performance-linked incentives ranging from 2.25% to 5% on eligible sales of mobile phones manufactured in India. To encourage self-reliance, companies sourcing key components domestically will receive an additional incentive of up to 1.5%. Furthermore, firms investing in product design and research and development (R&D) for Indian brands can claim a further 3% incentive.
Union Electronics and IT Minister Ashwini Vaishnaw highlighted the dramatic transformation of India’s electronics sector over the past decade. “Compared to 2014, electronics manufacturing in India has increased seven-fold, while exports have grown eleven-fold,” Vaishnaw stated. “India, which was once a mobile phone importer, has now become a net exporter and the world’s second-largest manufacturer of mobile phones by volume, with 99.2% of handsets used domestically manufactured in the country.”
Vaishnaw also noted that smartphones emerged as India’s single largest exported product category in 2025, surpassing traditional leading exports like diesel fuel and cut diamonds.
Beyond boosting manufacturing output and exports, the MPMS is expected to have a significant impact on employment. The government projects that the scheme will create approximately 60,000 direct jobs over its five-year tenure, providing critical opportunities for young workers across the country’s expanding manufacturing facilities.
To qualify for the incentives, the scheme sets distinct eligibility criteria: mobile phone manufacturers must report a minimum turnover of ₹10,000 crore in FY26, while Electronics Manufacturing Services (EMS) players require a minimum turnover of ₹1,000 crore. Existing Indian brands must also demonstrate incremental sales of ₹5,000 crore over their FY26 figures to claim the benefits.