Cabinet Greenlights MPMS: ₹62,500 Cr Scheme Poised to Fuel India’s Mobile Tech Sovereignty and Export Surge

Cabinet Greenlights MPMS: ₹62,500 Cr Scheme Poised to Fuel India’s Mobile Tech Sovereignty and Export Surge​

The Union Cabinet has formally approved the Mobile Phone Manufacturing Scheme (MPMS), a transformative initiative aimed at solidifying India's position as a global leader in electronics manufacturing. Chaired by the Prime Minister Shri Narendra Modi, the approval comes with a dedicated budgetary outlay of Rs 62,500 crore. This comprehensive scheme is set to run for five years, spanning from FY 2026-27 through FY 2030-31, focusing intensely on scaling production and achieving deep domestic value addition.

Overview of the Mobile Phone Manufacturing Scheme (MPMS)​

The MPMS initiative is designed not merely to boost volume but to drive India towards technological sovereignty in mobile device manufacturing. Key among its objectives are strengthening supply chain resilience and fostering indigenous capability building. The government intends for this scheme to facilitate the creation of strong Indian brands, enabling them to capture significant economic value and develop proprietary patents in design and Research & Development (R&D).

Incentives Driving Domestic Value Chain Growth​

To incentivize manufacturers towards deeper domestic integration, the MPMS provides a tiered structure of financial support. Eligible sales for manufacturing mobile phones within India will receive incentive support at differentiated rates ranging from 2.25% to 5%. Furthermore, an additional incentive of up to 1.5% has been introduced, specifically targeting companies that incorporate key components or sub-assemblies sourced domestically.

For those manufacturers committed to building indigenous Indian brands, the scheme introduces a specialized incentive of 3% on Eligible Sales for design and R&D output. These focused incentives are designed to push MSMEs and large enterprises towards higher levels of localized manufacturing and innovation.

Expected Economic Impact and Job Creation​

The long-term outlook provided by the MPMS is highly optimistic regarding both production volume and employment generation. During the five-year tenure of the scheme, cumulative mobile phone production in the country is projected to reach approximately Rs 39,00,000 crore. This massive growth is expected to be accompanied by a significant increase in global exports of mobile phones.

Beyond economic output, the MPMS is also forecast to generate around 60,000 direct jobs. The creation of these opportunities reinforces the scheme’s role in contributing meaningfully to employment generation and strengthening India's standing within the global electronics manufacturing ecosystem.

Context: Mobile Phones Anchor India’s Electronics Ecosystem​

Mobile phone manufacturing has emerged as a critical anchor for India's broader electronics sector growth. Since FY 2014-15, the Prime Minister's 'Make in India' vision has led to a tremendous rise, propelling electronics manufacturing to grow seven times and exports to expand by eleven fold.

India currently stands as the world's second-largest mobile phone manufacturer based on volume. Notably, a substantial 99.2% of all mobile phones utilized within India are domestically manufactured. This sector is highly employment intensive, providing opportunities for large numbers of people across various geographies.

The Role of Smartphones in Global Trade​

Smartphones have rapidly evolved into the single largest exported product category from India in 2025. This remarkable achievement sees mobile phones surpassing traditional high-value exports such as diesel fuel and cut diamonds. Mobile devices are therefore playing a critical role, contributing significantly to both India's electronics production and its position in global value chains.

This momentum follows the transformative impact of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), which successfully established India as a premier hub for mobile manufacturing and exports. The tenure of the PLI-LSEM concluded on March 31, 2026.