Govt Unveils Rs 62,500 Cr Mobile Phone Manufacturing Scheme

New Delhi, Jul 16 (KNN) The Union Cabinet, chaired by Prime Minister Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a total outlay of Rs 62,500 crore, according to the Ministry of Electronics & IT (MeitY). 

The initiative aims to scale up production, increase domestic value addition and strengthen India’s position in the global electronics supply chain.

Incentives to Drive Manufacturing and Innovation

The scheme will be implemented over five years, from FY 2026-27 to FY 2030-31. It offers incentive support ranging from 2.25 per cent to 5 per cent on eligible sales of mobile phones manufactured in India.

Additional incentives include up to 1.5 per cent linked to domestic sourcing of key components and sub-assemblies. A further 3 per cent incentive has been предусмотр for companies investing in product design and research and development, with a focus on building Indian brands and technological capabilities.

Focus on Supply Chain and Self-Reliance

The MPMS seeks to deepen local manufacturing ecosystems, reduce import dependence and promote supply chain resilience. It also aims to encourage the creation of intellectual property, including patents in mobile phone design and development.

Expected Economic Impact

According to official estimates, the scheme could drive cumulative mobile phone production to around Rs 39 lakh crore during its tenure, alongside a significant rise in exports. It is also expected to generate approximately 60,000 direct jobs.

(KNN Bureau)