Cabinet approves Rs 62,500 crore Mobile Phone Manufacturing Scheme

The Union Cabinet on 15 July approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore.

• The scheme will be implemented for five years, from FY 2026–27 to FY 2030–31.
• It aims to boost domestic mobile phone manufacturing, increase value addition, strengthen supply chains, and enhance India’s competitiveness in global electronics manufacturing.

Key Features

• Manufacturers will receive incentives of 2.25% to 5% on eligible sales of mobile phones manufactured in India.
• An additional incentive of up to 1.5% will be provided for higher domestic sourcing of key components and sub-assemblies, encouraging localisation.
• Indian companies will receive an additional 3% incentive linked to product design and research & development (R&D) to promote indigenous technology and domestic brands.

Expected Outcomes

• The scheme aims to significantly expand India’s mobile phone manufacturing capacity over the next five years.
• During the scheme period, cumulative mobile phone production is projected to reach around ₹39 lakh crore.
• It is also expected to substantially increase mobile phone exports, generate employment, strengthen domestic electronics manufacturing, and support the Make in India and Atmanirbhar Bharat initiatives.

Source: PIB

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