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Dated: 17.07.2026

India’s Mobile Phone Manufacturing Scheme (MPMS): Driving Innovation and Global Competitiveness

The Indian government has launched the Mobile Phone Manufacturing Scheme (MPMS) to further accelerate the country’s position as a global leader in mobile phone production. With a substantial budgetary outlay of Rs 62,500 crore, the scheme is designed to boost domestic manufacturing, foster innovation, and create a robust ecosystem for Indian brands.

Key Features of the MPMS

1. Production and Value Addition
   • The scheme aims to scale up mobile phone production and deepen domestic value addition.
   • It focuses on strengthening supply chain resilience and enhancing India’s global competitiveness in electronics manufacturing.
2. Support for Indian Brands and R&D
   • MPMS encourages the creation of Indian brands, technological sovereignty, and the development of indigenous patents in design and research & development.
   • An additional 3% incentive is provided on eligible sales for design and R&D activities, specifically to support Indian brands.
3. Incentive Structure
   • Manufacturers receive incentive support on eligible sales at differentiated rates ranging from 2.25% to 5%.
   • There is an extra incentive of up to 1.5% linked to domestic sourcing of key components and sub-assemblies.
4. Scheme Duration
   • The scheme will run for five years, from FY 2026-27 to FY 2030-31.

Expected Impact and Outcomes

1. Massive Production Growth
   • The cumulative mobile phone production during the scheme’s tenure is projected to reach approximately Rs 39,00,000 crore.
   • A significant increase in mobile phone exports is anticipated, further strengthening India’s position in the global market.
2. Job Creation and Economic Growth
   • The scheme is expected to generate around 60,000 direct jobs, contributing to economic growth and employment, especially for youth from rural areas.
3. Strengthening the Electronics Ecosystem
   • By incentivizing domestic manufacturing and R&D, MPMS will help India capture greater economic value and foster innovation.
   • The scheme supports the development of a resilient supply chain and encourages the creation of Indian intellectual property.

Context: India’s Electronics Manufacturing Journey

• Since FY 2014-15, India’s electronics manufacturing sector has grown sevenfold, with exports increasing eleven times, driven largely by the Make in India initiative.
• Mobile phone manufacturing has been the anchor of this growth, making India the world’s second-largest mobile phone manufacturer by volume.
• Today, 99.2% of mobile phones used in India are manufactured domestically, reflecting the success of previous policy initiatives and the potential for further expansion under MPMS.

Conclusion

The Mobile Phone Manufacturing Scheme is a strategic move to solidify India’s leadership in electronics manufacturing. By offering targeted incentives, supporting R&D, and fostering Indian brands, the scheme is set to drive innovation, create jobs, and boost exports, making India a global hub for mobile phone production.

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