India Launches ₹62,500 Crore Mobile Manufacturing Scheme

India's central government has approved a new ₹62,500 crore (approx. $750 billion USD) Mobile Phone Manufacturing Scheme (MPMS) aimed at enhancing domestic mobile phone production. The scheme, with a five-year tenure extending to FY31, will offer manufacturers incentives of up to 5% on eligible sales, with additional benefits for sourcing domestic components and for research and development (R&D).

The initiative is designed to bolster India's position in the global electronics market. Specifically, it includes a 3% incentive on eligible sales for product design and R&D, aiming to foster the growth of homegrown smartphone brands. Companies can also receive an additional incentive of up to 1.5% for the domestic sourcing of key components and sub-assemblies.

The government forecasts that the scheme will drive cumulative mobile phone production valued at approximately ₹39 trillion (around $468 billion USD) over its five-year duration. Furthermore, it is projected to create around 60,000 direct jobs, bolstering the nation's economy and industrial capabilities.

India's mobile phone sector has experienced substantial growth over the past decade. In FY14-15, production stood at ₹18,900 crore, while by FY25-26, it reached ₹6.27 trillion—an increase of over 33 times. During the same period, exports surged from ₹1,566 crore to ₹2.60 trillion, demonstrating India's emergence as a significant global player in electronics manufacturing. This new scheme follows the previous Production Linked Incentive (PLI) scheme, which concluded in March 2026.