The Union Cabinet approved two manufacturing programmes worth Rs 1.9 lakh crore to expand India’s mobile phone and semiconductor industries. The decisions include a Rs 62,500 crore Mobile Phone Manufacturing Scheme and a Rs 1,27,500 crore Semicon 2.0 package. These schemes were cleared on Wednesday and aim to run through FY2030-31, following the conclusion of the previous Production Linked Incentive scheme in March 2026, according to medianama.com.
The Mobile Phone Manufacturing Scheme offers incentives ranging from 2.25% to 5% on eligible sales for companies manufacturing mobile phones in India. Additional incentives of up to 1.5% are available for sourcing key components domestically, and a further 3% incentive is provided for companies developing Indian mobile phone brands through design and research. The Semicon 2.0 package focuses on strengthening chip design and manufacturing capabilities within the country, marking a strategic shift towards increasing domestic production and innovation.
These programmes aim to support cumulative mobile phone production worth around Rs 39 lakh crore and create approximately 60,000 direct jobs by March 2031. The government expects the schemes to boost exports and enhance domestic value addition, positioning India as a significant player in the global smart device and semiconductor markets. The shift from assembly-centric incentives to promoting component production and R&D reflects evolving priorities in India’s electronics manufacturing policy.
The Mobile Phone Manufacturing Scheme is set to run from FY2026-27 to FY2030-31, with the government targeting substantial growth in domestic production and employment. The Semicon 2.0 initiative complements this by investing Rs 1,27,500 crore into chip design and manufacturing infrastructure, reinforcing India’s ambitions in the semiconductor sector.