The Ministry of Electronics and Information Technology (MeitY) has notified the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore, aimed at enhancing India's global competitiveness in mobile phone manufacturing. The scheme seeks to increase scale, deepen the mobile manufacturing supply chain through higher Domestic Value Addition (DVA), and strengthen domestic manufacturing capabilities while supporting Indian mobile phone brands to achieve technological sovereignty and capture greater economic value.
Union Minister Ashwini Vaishnaw emphasized that the scheme will provide significant impetus to developing Indian-owned mobile brands, intellectual property, and design, with the government undertaking meticulous evaluation to ensure genuine Indian ownership of intellectual property. The minister projected that India will see its first strong indigenous mobile brand by mid-2027.
The scheme builds on the success of previous initiatives under the Prime Minister's Make in India vision, which has propelled electronics manufacturing to grow seven-fold and exports eleven-fold since FY 2014-15. India is now the world's second largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in India being domestically manufactured, and smartphones emerged as India's single largest exported product category in 2025.
Scheme Structure and Incentives
The MPMS has two target segments: Target Segment 1 (TS1) for incentivizing mobile phone manufacturing and Target Segment 2 (TS2) for supporting Indian mobile phone brands. The scheme tenure is five years from FY 2026-27 to FY 2030-31, with applicants under TS2 potentially granted a one-year gestation period.
For TS1, the scheme provides differentiated incentives ranging from 2.25% to 5%, while TS2 offers 5% incentive for Indian brands with an additional 3% incentive for Indian design and R&D. An additional incentive of up to 1.5% is provided for domestic sourcing of key components and sub-assemblies for both segments, requiring localization for a minimum of 25% of total mobile phone units manufactured in a financial year.
Eligibility Criteria
Eligibility under TS1 requires mobile phone manufacturers, including Electronics Manufacturing Services (EMS) companies registered in India, to have a minimum turnover of ₹10,000 crore in FY 2025-26. Existing brands must meet an annual threshold of ₹5,000 crore every year above FY 2025-26 sales, while new brands become eligible only after achieving total annual sales of ₹10,000 crore in India and must thereafter meet the year-on-year threshold requirement of ₹5,000 crore.
Eligibility under TS2 requires mobile phone manufacturers, including EMS companies registered in India, with a minimum turnover of ₹1,000 crore in FY 2025-26, and satisfying all criteria of an 'Indian Brand'. This includes being registered/incorporated in India; IP and trademark held within India; management control with Indian citizens; more than 51% shareholding held by Indian citizens; and in-house R&D and design capabilities in India.
Expected Outcomes
During the scheme tenure, cumulative mobile phone production in the country is expected to reach approximately ₹39 lakh crore, with significant increase in mobile phone exports. The MPMS is expected to generate around 60,000 direct jobs, contributing to economic growth, employment generation, and strengthening India's position as a global electronics manufacturing hub.