RS 62,500-CRORE mobile phone manufacturing scheme to increase domestic production gets nod., Pg1

Key Highlights:

• The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore on July 15, 2026.
• The scheme aims to significantly increase domestic mobile phone production, deepen local value addition, and boost exports.
• It will be implemented over a five-year period, from FY 2026-27 to FY 2030-31.
• The government anticipates cumulative mobile phone production worth approximately ₹39 lakh crore during the scheme's tenure.
• The MPMS is projected to generate around 60,000 direct jobs in the sector.

Detailed Insights:

• The MPMS succeeds the earlier Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which concluded on March 31, 2026.
• Under the scheme, manufacturers will receive incentives ranging from 2.25% to 5% on eligible sales of mobile phones produced in India.
• An additional incentive of up to 1.5% is provided for companies that domestically source key components and sub-assemblies.
• Indian brands involved in product design and research and development (R&D) will be eligible for an extra 3% incentive on eligible sales.
• The scheme's objectives include strengthening supply chain resilience, enhancing global competitiveness, and fostering the development of Indian brands.
• India has emerged as the world's second-largest mobile phone manufacturer by volume, with smartphones becoming the country's largest export product in 2025.

Key Concepts Involved:

• Mobile Phone Manufacturing Scheme (MPMS): A new government initiative with a substantial financial outlay to incentivize and expand domestic mobile phone production and exports.
• Production Linked Incentive (PLI) Scheme: A government program offering performance-based incentives on incremental sales to boost domestic manufacturing across various sectors.
• Make in India: A flagship government initiative aimed at encouraging companies to manufacture their products in India and attract foreign investment.
• Atmanirbhar Bharat: A vision for a self-reliant India, promoting local manufacturing, innovation, and economic resilience.