India launches ₹62,500 crore Mobile Phone Manufacturing Scheme

India's Ministry of Electronics and Information Technology has notified the Mobile Phone Manufacturing Scheme (MPMS), a five-year initiative with a ₹62,500 crore budgetary outlay. Effective from April 1, 2026, the scheme aims to transition the nation from simple assembly to deep domestic value addition, targeting ₹39 lakh crore in production and the creation of approximately 60,000 jobs by 2031.

The program features two primary segments. Target Segment 1 focuses on large-scale manufacturing with incentives ranging from 2.25% to 5%. Target Segment 2 specifically supports Indian-owned mobile brands, offering a 5% incentive, with an additional 3% available for domestic design and R&D. Companies can also receive up to 1.5% extra for utilizing locally manufactured components such as displays, camera modules, and battery cells.

To qualify, mobile phone manufacturers must reach a minimum turnover of ₹10,000 crore in FY26, while Electronics Manufacturing Services (EMS) firms with at least 51% Indian ownership require a ₹1,000 crore turnover. Union Minister Ashwini Vaishnaw emphasized that the scheme seeks to foster genuine Indian intellectual property and design capable of competing globally.