Mobile Phone Manufacturing Scheme (MPMS): Features, Incentives, Benefits & Objectives

Has the Government launched a new scheme to promote mobile phone manufacturing in India? Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore to strengthen India's mobile phone manufacturing ecosystem. The scheme aims to increase domestic production, deepen value addition, strengthen supply chains, encourage innovation, and improve India's competitiveness in the global electronics industry.

MPMS scheme will be implemented for five years, from FY 2026-27 to FY 2030-31. It provides performance-based incentives on eligible sales of mobile phones manufactured in India while rewarding companies that source key components domestically and invest in product design and research & development (R&D).

Approved by the Union Cabinet, MPMS is a significant Central Government New Scheme focused on expanding India's mobile phone manufacturing capabilities and supply chain ecosystem.

MPMS has been introduced after the successful completion of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which ended on 31 March 2026. Building on the achievements of the earlier scheme, the Government aims to make India a stronger global manufacturing hub for mobile phones while creating employment opportunities and supporting Indian brands.

Mobile Phone Manufacturing Scheme (MPMS) Overview

Particulars	Details
Scheme Name	Mobile Phone Manufacturing Scheme (MPMS)
Approved By	Union Cabinet
Budget Outlay	₹62,500 Crore
Scheme Period	FY 2026-27 to FY 2030-31
Scheme Duration	5 Years
Implementing Ministry	Ministry of Electronics and Information Technology (MeitY)
Manufacturing Incentive	2.25% to 5% on eligible sales
Domestic Sourcing Incentive	Up to 1.5% additional incentive
Design & R&D Incentive	Additional 3% on eligible sales for eligible Indian brands
Expected Production	Around ₹39 lakh crore
Expected Employment	Around 60,000 direct jobs
Official Website	https://www.meity.gov.in/

What is the Mobile Phone Manufacturing Scheme (MPMS)?

The Mobile Phone Manufacturing Scheme (MPMS) is a Central Government initiative designed to strengthen India's mobile phone manufacturing ecosystem by encouraging production, increasing domestic value addition, and promoting innovation. The scheme supports manufacturers that produce mobile phones in India while encouraging greater use of locally manufactured components.

Another important objective of MPMS is to promote product design, research and development (R&D), and the growth of Indian mobile phone brands. Through these measures, the Government aims to build a self-reliant and globally competitive electronics manufacturing sector.

Why Was the Mobile Phone Manufacturing Scheme (MPMS) Introduced?

The Government introduced the Mobile Phone Manufacturing Scheme (MPMS) to build on the success of the earlier Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) and further strengthen India's electronics manufacturing ecosystem. The key reasons include:

• The PLI-LSEM scheme concluded on 31 March 2026 after significantly expanding India's mobile phone manufacturing capacity.
• India has become the world's second-largest mobile phone manufacturer by volume.
• Since FY 2014-15, India's electronics manufacturing has grown nearly sevenfold, while exports have increased around elevenfold.
• Smartphones became India's largest exported product category in 2025, highlighting the rapid growth of the electronics sector.
• Approximately 99.2% of mobile phones used in India are now manufactured domestically.
• The Government aims to further increase domestic value addition and reduce dependence on imported components.
• The scheme seeks to strengthen supply chain resilience and encourage local manufacturing of key components and sub-assemblies.
• MPMS also promotes innovation, product design, research & development (R&D), and the growth of globally competitive Indian mobile phone brands.

Objectives of the Mobile Phone Manufacturing Scheme

The Mobile Phone Manufacturing Scheme has been launched with the following objectives:

• Increase mobile phone production in India.
• Deepen domestic value addition across the electronics manufacturing ecosystem.
• Strengthen supply chains for key components and sub-assemblies.
• Improve India's competitiveness in global electronics manufacturing.
• Promote Indian mobile phone brands.
• Encourage investment in product design and research & development (R&D).
• Increase exports of mobile phones manufactured in India.
• Generate employment opportunities.
• Support the Government's Make in India and Atmanirbhar Bharat initiatives.

Key Features of MPMS

The Mobile Phone Manufacturing Scheme includes several features to encourage manufacturing, innovation, and long-term investment in India's electronics sector.

• Budgetary Support - The Union Cabinet has approved the scheme with a budgetary outlay of ₹62,500 crore, providing financial support for eligible manufacturers over the scheme period.
• Five-Year Implementation - The scheme will remain operational from FY 2026-27 to FY 2030-31, giving manufacturers long-term policy certainty for expanding production and investing in technology.
• Manufacturing Incentive - Eligible manufacturers will receive sales-linked incentives ranging from 2.25% to 5% on eligible mobile phone sales, encouraging higher production in India.
• Incentive for Domestic Sourcing - Companies that procure key components and sub-assemblies from domestic suppliers can receive an additional incentive of up to 1.5%, helping increase local value addition.
• Support for Design and R&D - Eligible Indian brands investing in product design and research & development (R&D) will receive an additional 3% incentive on eligible sales. This provision aims to encourage innovation, technological development, and the creation of intellectual property in India.

• Focus on Global Competitiveness - Apart from promoting manufacturing, the scheme seeks to strengthen India's supply chain, improve export competitiveness, attract investments, and establish the country as a leading global hub for mobile phone manufacturing.

MPMS Incentive Structure

The incentive structure has been designed to reward manufacturing, domestic sourcing, and innovation.

Incentive Type	Benefit
Manufacturing Incentive	2.25% to 5% on eligible sales
Domestic Sourcing Incentive	Up to 1.5% additional incentive
Design & R&D Incentive	Additional 3% on eligible sales for eligible Indian brands

The manufacturing incentive encourages companies to increase mobile phone production in India, while the domestic sourcing incentive promotes the use of locally manufactured components. The additional incentive for design and R&D supports Indian companies in developing innovative products and strengthening their technological capabilities.

Difference Between MPMS and PLI-LSEM

Mobile Phone Manufacturing Scheme (MPMS) builds upon the achievements of the earlier Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) while introducing greater emphasis on domestic value addition and innovation.

MPMS	PLI-LSEM
Effective from FY 2026-27	Ended on 31 March 2026
Higher focus on domestic sourcing of key components	Mainly focused on production and sales
Additional 3% incentive for design and R&D	No dedicated design and R&D incentive
Supports the growth of Indian mobile phone brands	Primarily focused on manufacturing and exports

Overall, MPMS goes beyond production-linked incentives by strengthening domestic supply chains, encouraging research and innovation, and supporting Indian companies in developing globally competitive mobile phone brands.

Who Can Benefit from the Mobile Phone Manufacturing Scheme (MPMS)?

The Mobile Phone Manufacturing Scheme (MPMS) has been designed to strengthen India's entire mobile phone manufacturing ecosystem. Although the detailed operational guidelines and eligibility criteria are expected to be notified separately by the Government, the scheme is likely to benefit a wide range of stakeholders, including:

• Mobile phone manufacturers producing handsets in India.
• Indian mobile phone brands investing in product design and research & development (R&D).
• Global mobile phone manufacturers operating manufacturing facilities in India.
• Manufacturers of key components and sub-assemblies used in mobile phones.
• Electronics supply chain companies contributing to domestic value addition.

Interested companies should refer to the official guidelines issued by the Ministry of Electronics and Information Technology (MeitY) once they are released for detailed eligibility conditions, incentive calculations, and implementation procedures.

Expected Outcomes of MPMS

Mobile Phone Manufacturing Scheme is expected to accelerate the growth of India's electronics manufacturing sector and further strengthen the country's position as a global mobile phone production hub. During the five-year implementation period, the Government expects the scheme to deliver the following outcomes:

• Cumulative mobile phone production of approximately ₹39,00,000 crore.
• Significant growth in mobile phone exports.
• Creation of around 60,000 direct jobs.
• Higher domestic value addition through increased local sourcing of components.
• Stronger and more resilient electronics supply chains.
• Greater investment in product design, innovation, and research & development.
• Enhanced global competitiveness of India's electronics manufacturing industry.

Impact of MPMS on India's Electronics Manufacturing Sector

Mobile Phone Manufacturing Scheme is expected to play a major role in the next phase of India's electronics manufacturing growth. By providing incentives for manufacturing, domestic sourcing, and innovation, the scheme is likely to attract fresh investments and encourage companies to expand their production capacity in India.

The additional incentive for domestic sourcing is expected to increase local manufacturing of components and sub-assemblies, reducing dependence on imports and strengthening the domestic supply chain. Similarly, the incentive for design and research & development will encourage Indian companies to develop new technologies, create intellectual property, and build globally competitive mobile phone brands.

Overall, MPMS supports the Government's Make in India and Atmanirbhar Bharat initiatives while reinforcing India's position as one of the world's leading electronics manufacturing destinations.

FAQs on Mobile Phone Manufacturing Scheme

Q1. What is the Mobile Phone Manufacturing Scheme (MPMS)?
MPMS is a Central Government initiative approved by the Union Cabinet to promote mobile phone manufacturing, domestic value addition, innovation, exports, and the growth of Indian mobile phone brands.

Q2. What is the budget of the Mobile Phone Manufacturing Scheme?
The scheme has been approved with a budgetary outlay of ₹62,500 crore.

Q3. How long will the MPMS remain in force?
The scheme will be implemented for five years, from FY 2026-27 to FY 2030-31.

Q4. What incentives are available under MPMS?
Eligible manufacturers can receive:

• 2.25% to 5% incentive on eligible sales of mobile phones manufactured in India.
• Up to 1.5% additional incentive for domestic sourcing of key components and sub-assemblies.
• Additional 3% incentive on eligible sales for eligible Indian brands investing in product design and research & development (R&D).

Q5. Why was the Mobile Phone Manufacturing Scheme introduced?
The MPMS scheme was launched after the completion of the PLI-LSEM scheme to sustain the growth of India's mobile phone manufacturing sector, increase domestic value addition, strengthen supply chains, promote innovation, and improve global competitiveness.

Q7. Who can benefit from MPMS?
MPMS scheme is expected to benefit mobile phone manufacturers, Indian brands, global manufacturers producing in India, component manufacturers, and electronics supply chain companies, subject to the eligibility conditions notified by the Government.

Q8. What are the expected outcomes of MPMS?
The Government expects MPMS to achieve cumulative mobile phone production of around ₹39 lakh crore, generate approximately 60,000 direct jobs, boost exports, and strengthen India's electronics manufacturing ecosystem.

Q9. Which ministry will implement MPMS?
The scheme will be implemented by the Ministry of Electronics and Information Technology (MeitY).

Official Links Related to MPMS

For the latest announcements, implementation updates, and future operational guidelines, you can visit the following official websites:

• Cabinet Approval - Mobile Phone Manufacturing Scheme (MPMS): https://www.pmindia.gov.in/en/news_updates/cabinet-approves-mobile-phone-manufacturing-scheme-mpms/
• Ministry of Electronics and Information Technology (MeitY): https://www.meity.gov.in/
• Make in India Official Website: https://www.makeinindia.com/

Conclusion

Mobile Phone Manufacturing Scheme (MPMS) is a major step towards strengthening India's mobile phone manufacturing industry and expanding the country's electronics ecosystem. With a ₹62,500 crore budget and a five-year implementation period, MPMS encourages higher production, greater domestic value addition, local sourcing of components, and investment in product design and research & development.

Building on the success of the earlier PLI-LSEM scheme, MPMS aims to boost exports, create employment, strengthen supply chains, and support the growth of globally competitive Indian mobile phone brands. As the Government releases detailed operational guidelines, manufacturers and other stakeholders should regularly check the official portals for updates on implementation, eligibility, and operational procedures.