Mobile Makers Get New Push as ₹62,500-Crore Manufacturing Scheme Opens

The government has formally opened the ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS), seeking to expand India’s manufacturing scale, attract fresh investments and create jobs as the country strengthens its position as a global electronics hub.

The scheme will run for five years from FY2026-27 to FY2030-31 and is expected to support around ₹39 lakh crore of cumulative mobile-phone production during the period. The government estimates the programme will generate about 60,000 direct jobs, with additional employment expected across component suppliers, logistics and related manufacturing services.

Under the guidelines issued on Friday, mobile-phone manufacturers and electronics manufacturing services (EMS) companies with FY26 turnover of ₹10,000 crore will be eligible. EMS firms with at least 51% Indian ownership can participate with a lower FY26 turnover threshold of ₹1,000 crore.

The scheme builds on a sharp expansion in India’s mobile manufacturing base over the past five years. Production increased from about ₹2.2 lakh crore in FY2020-21 to ₹5.5 lakh crore in FY2024-25, with output rising to ₹2.75 lakh crore in FY2021-22, ₹3.5 lakh crore in FY2022-23 and ₹4.22 lakh crore in FY2023-24.

India is now the world’s second-largest mobile-phone manufacturer by volume, while 99.2% of mobile phones used domestically are manufactured in the country. The earlier large-scale electronics PLI scheme attracted around ₹96,000 crore in investment across the mobile manufacturing ecosystem, helping establish production and export capacity.

Under MPMS, existing brands must achieve incremental sales of ₹5,000 crore above their FY26 turnover in FY27, rising progressively to ₹25,000 crore by FY31. New brands must reach ₹10,000 crore in annual Indian sales to qualify.

Incentives will range from 2.75% to 2.25% over FY27-FY31, with an additional 1.5% incentive for domestic sourcing of components such as display modules, batteries and USB cables.

The government expects the new scheme to deepen localisation, encourage fresh capital expenditure and strengthen India’s position in global electronics supply chains.