The Ministry of Electronics and Information Technology (MeitY) has officially notified the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to enhance domestic production and support Indian-owned mobile phone brands. The scheme was approved by the Union Cabinet on July 15 and will run for five years from fiscal year 2027 through 2031, succeeding the previous PLI scheme for large-scale electronics manufacturing that ended on March 31, 2026, according to inc42.com.
MPMS offers differentiated incentives ranging from 2.25% to 5% to eligible mobile phone manufacturers and electronics manufacturing services providers. Indian brands qualify for a 5% incentive plus an additional 3% for Indian design and research and development. There is also a further incentive of up to 1.5% for sourcing specified components and sub-assemblies domestically, provided these localised components constitute at least 25% of the total mobile phone units manufactured annually. The scheme targets two segments: expanding mobile phone manufacturing and supporting Indian mobile phone brands, with eligibility criteria including a minimum turnover of ₹10,000 crore in FY26 for manufacturers, per inc42.com.
This scheme follows the conclusion of the Production Linked Incentive (PLI) programme for electronics manufacturing, aiming to deepen local value addition and strengthen India's position in the mobile phone sector. By offering higher incentives to Indian brands and encouraging domestic component sourcing, the government seeks to build a robust ecosystem for Indian mobile phone companies amid growing global competition. The MPMS is part of broader efforts to reduce import dependence and promote self-reliance in electronics manufacturing, a key priority for the government, as detailed by inc42.com.
The MPMS notification marks a critical step in India's mobile manufacturing policy, with the scheme set to run through FY31. The Union Cabinet approved the scheme on July 15, and the government has outlined clear eligibility and incentive structures to attract large manufacturers and Indian brands alike, aiming to boost the sector's growth over the next five years, according to inc42.com.