New Delhi, July 15 The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Mobile Phone Manufacturing Scheme with a budgetary outlay of ₹62,500 crore to expand domestic production, strengthen supply chains and increase local value addition in India’s mobile phone industry.
The five-year scheme will run from FY 2026-27 to FY 2030-31 and provide eligible manufacturers with incentives linked to sales of mobile phones produced in India.
Under the scheme, incentive support on eligible sales will range from 2.25% to 5%. Companies may also receive an additional incentive of up to 1.5% for sourcing key components and sub-assemblies domestically.
The programme provides a further 3% incentive on eligible sales for product design and research and development, with the objective of developing Indian mobile phone brands.
The government said the scheme aims to support Indian patents in design and R&D, improve technological capabilities and increase the economic value retained within the country.
During the scheme period, cumulative mobile phone production in India is expected to reach approximately ₹39 lakh crore. The government also expects a significant increase in mobile phone exports.
The programme is projected to generate around 60,000 direct jobs and strengthen India’s position in the global electronics manufacturing supply chain.
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According to the Cabinet release, India’s electronics manufacturing sector has expanded sevenfold since FY 2014-15, while electronics exports have increased elevenfold during the same period.
Mobile phone manufacturing has been a major contributor to this growth. India is now the world’s second-largest mobile phone manufacturer by volume, the government said.
Around 99.2% of the mobile phones used in India are manufactured domestically, according to the release.
Smartphones also emerged as India’s largest individual export commodity in Calendar Year 2025, overtaking automotive diesel fuel and cut and polished diamonds.
The newly approved programme follows the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing, whose tenure ended on March 31, 2026.
The earlier scheme supported the expansion of mobile phone manufacturing and exports. The new programme includes incentives linked to domestic component sourcing, product design, research and development, and the creation of Indian mobile phone brands.
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