India Notifies $8 Billion Mobile Manufacturing Scheme to Boost Local Brands
India's Ministry of Electronics and Information Technology has launched a $8 billion (₹62,500 Cr) scheme to expand domestic mobile phone production and support Indian-owned brands.
The Indian Ministry of Electronics and Information Technology (MeitY) has officially notified a ₹62,500 crore ($8 billion USD) scheme aimed at boosting domestic mobile phone manufacturing and fostering Indian-owned brands. The five-year Mobile Phone Manufacturing Scheme (MPMS) will run from fiscal year 2027 to 2031, succeeding the previous Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing.
The MPMS offers differentiated incentives, ranging from 2.25% to 5%, to eligible mobile phone manufacturers and Electronics Manufacturing Services (EMS) providers. Indian brands are set to receive a 5% incentive, with an additional 3% available for those incorporating Indian design and R&D. Companies can also claim up to an extra 1.5% for sourcing specified components domestically.
The scheme targets two segments: expanding overall mobile phone production and supporting indigenous Indian brands. To qualify as an Indian brand, companies must be registered in India, hold their intellectual property and trademarks locally, and have management control vested with Indian citizens. Over 51% of shareholding must also be by Indian citizens, with design and R&D capabilities located in India.
The government anticipates the MPMS will drive cumulative mobile phone production valued at approximately ₹39 lakh crore ($470 billion USD) over its tenure. This initiative is expected to significantly increase exports and generate around 60,000 direct jobs, furthering India's position as a major global mobile manufacturing hub.