Cabinet approves Mobile Phone Manufacturing Scheme with budgetary outlay of Rs 62500 crore

Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore (Rupees Sixty-Two Thousand Five Hundred Crore Only). This is aimed at further scaling up the production, deepening domestic value addition, strengthening supply chain resilience and enhancing global competitiveness. MPMS scheme also aims at building Indian brands to achieve technological sovereignty, capture large economic value and create Indian patents in design and R&D. The scheme tenure shall be 5 Years i.e. from FY 2026-27 to FY 2030-31.

The scheme provides incentive support on eligible sales for manufacturing of mobile phones in India at differentiated rates ranging from 2.25% to 5%. Scheme also provides additional incentive of up to 1.5% linked to domestic sourcing of key components/ sub-assemblies. For building Indian brands, an additional incentive @3% on Eligible Sales for design and R&D of the product.

During the scheme tenure, the cumulative mobile phone production in the country is expected to reach approximately Rs 39,00,000 crore with significant increase in exports of mobile phones. The Scheme is also expected to generate around 60,000 direct jobs thereby contributing to economic growth, employment generation and strengthening India’s position in global electronics manufacturing hub.

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