Centre Notifies ₹62,500 Crore Mobile Phone Manufacturing Scheme

Mobile Phone Manufacturing Scheme (MPMS) of INR 62,500 Crore has been announced by the Centre to further enhance India’s standing in becoming a leading electronics manufacturing destination. The five-year scheme, announced on August 21, 2026, will offer production-linked incentive (PLI) to support the manufacturing of mobile phones and promote the growth of Indian mobile phone brands. The plan will focus on increasing the scale of manufacturing operations, increase domestic value addition and develop a robust domestic supply chain. An additional incentive up to 1.5% for domestic sourcing of key components and sub-assemblies will be provided under the scheme.

What is the Mobile Phone Manufacturing Scheme?

A government-sponsored program called the Mobile Phone Manufacturing Scheme (MPMS) aims to increase mobile phone manufacturing capacity in India and create a vibrant electronics manufacturing ecosystem within the country.

This scheme will run for a period of five years from April 1, 2026 to FY 2030-31.

This program is divided into two important target segments,

• Target Segment 1 (TS1): For mobile phone manufacturing
• Target Segment 2 (TS2): For Indian mobile phone brands

Applicant in TS2 will be granted a one-year gestation period.

Who Can Be Benefited Under the Scheme?

The notice contains provisions of eligibility for mobile phones manufacturers, including EMS companies, which have their registrations in India.

For companies with a minimum turnover of ₹10,000 crore in the fiscal year 2025-26, eligibility under certain conditions may apply.

Further, the scheme contains provisions of eligibility for firms with 51% of Indian ownership along with turnover of at least ₹1,000 crore in FY 2025-26.

It is worth mentioning that Indian mobile brands will not be required to meet any threshold sales volume. Selection of Indian brands under eligibility criteria will be performed by the Empowered Committee.

Up to 1.5% Extra Incentive for Domestic Components

Increasing domestic components’ share in production is one of the key features of the MPMS scheme.

The scheme provides up to 1.5% extra incentive for sourcing of domestic critical components and sub-assemblies. The requirement of the scheme is localization of the components to 25% of all the units of mobile phones produced by the company during a fiscal year.

The list of localized components includes the following critical components,

• Cameras modules
• Displayer assemblies
• Mechanical components
• Battery cells

Additional Measures for Indian Mobile Phone Brands

The policy also intends to help build Indian mobile phone brands that can compete internationally.

For instance, as indicated by industry remarks in the report, eligible domestic brands are likely to get an incentive of up to 3% for domestic research and development and product design under TS2.

This aspect is especially crucial since creating Indian mobile phone brands that are internationally competitive entails not only having adequate manufacturing facilities but also good product design and intellectual property.

How MPMS will Create Jobs and Increase Production

According to the Ministry of Electronics and Information Technology, the cumulative mobile phone production in India will amount to approximately ₹39 lakh crore during the policy period.

MPMS will further result in about 60,000 new direct employment opportunities.