Cabinet approves Rs 62,500 crore mobile phone manufacturing scheme

Under the MPMS, manufacturers will receive incentive support on eligible sales of mobile phones produced in India at differentiated rates ranging from 2.25 per cent to 5 per cent.

Moreover, the scheme provides an additional incentive of up to 1.5 per cent linked to domestic sourcing of key components and sub-assemblies.

To promote indigenous brands, manufacturers will be eligible for an additional 3 per cent incentive on eligible sales for product design and R&D.

According to the Cabinet, the scheme is expected to result in cumulative mobile phone production worth around Rs 39 lakh crore during its tenure, while significantly increasing exports of handsets from the country.

The MPMS is also projected to generate around 60,000 direct jobs, contributing to employment generation and economic growth.

The Cabinet noted that the initiative builds on the success of the government's Make in India programme, under which electronics manufacturing has grown seven-fold and exports have increased 11-fold since FY2014-15.

India is now the world's second-largest mobile phone manufacturer by volume, with 99.2 per cent of mobile phones used in the country being manufactured domestically.

The government also highlighted that smartphones emerged as India's single largest exported product category in 2025, surpassing traditional export leaders such as diesel fuel and cut diamonds.

Additionally, the new scheme succeeds the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) -- whose tenure ended on March 31.

The government said the PLI scheme played a transformative role in establishing India as a global hub for mobile phone manufacturing and exports.

--IANS

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