New Delhi: India has notified a ₹62,500 crore Mobile Phone Manufacturing Scheme aimed at expanding domestic production, increasing local value addition and supporting the development of Indian mobile phone brands.
The five-year scheme will run from FY 2026-27 to FY 2030-31. According to the Ministry of Electronics and Information Technology (MeitY), it is expected to support cumulative mobile phone production of around ₹39 lakh crore and generate approximately 60,000 direct jobs during its tenure.
The Mobile Phone Manufacturing Scheme (MPMS) has two target segments. The first will provide incentives for mobile phone manufacturing, while the second is aimed at supporting Indian mobile phone brands through incentives linked to manufacturing, domestic design and research and development.
Under Target Segment 1, eligible manufacturers will receive differentiated incentives ranging from 2.25 per cent to 5 per cent. Target Segment 2 will offer Indian brands a 5 per cent incentive along with an additional 3 per cent incentive for Indian design and R&D.
Both segments will also be eligible for an additional incentive of up to 1.5 per cent for domestic sourcing of key components and sub-assemblies. To qualify, these components must be localised in at least 25 per cent of the total mobile phone units manufactured during a financial year.
For Target Segment 1, applicants must have a minimum turnover of ₹10,000 crore in FY 2025-26. Existing brands will be required to achieve annual incremental sales of ₹5,000 crore over their FY 2025-26 sales, while a new brand will become eligible after achieving annual sales of ₹10,000 crore in India.
Under Target Segment 2, eligible companies must have a minimum turnover of ₹1,000 crore in FY 2025-26. They must be registered or incorporated in India, have their intellectual property and trademarks held within India, maintain management control with Indian citizens, have more than 51 per cent shareholding by Indian citizens, and possess in-house R&D and design capabilities in India. Applicants under this segment may also be allowed a one-year gestation period.
Electronics and Information Technology Minister Ashwini Vaishnaw said the scheme is intended to support the emergence of Indian-owned mobile phone brands, intellectual property and design capabilities. The government expects India to see its first strong indigenous mobile phone brand by mid-2027.
The new scheme follows the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing, whose tenure ended on March 31, 2026.
According to the government, electronics manufacturing in India has grown seven-fold and exports eleven-fold since FY 2014-15. It also said 99.2 per cent of mobile phones used in the country are now made in India, while India has emerged as the world’s second-largest mobile phone manufacturer by volume.
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