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Highlights
- The Government has notified the Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to strengthen India’s mobile phone manufacturing ecosystem.
- The scheme will support both mobile phone manufacturers and Indian-owned mobile brands.
- Indian brands can receive a 5 percent incentive, with an additional 3 percent incentive for Indian design and R&D.
Andrew Bonwick
Vice President of Product Development at Relm Insurance
Madhav Sheth
CEO of Ai+ Smartphone
Stephen Rose
CEO Render Networks
The Ministry of Electronics and Information Technology (MeitY) under the Government has notified the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore to boost India’s global competitiveness, deepen the domestic mobile phone supply chain and strengthen manufacturing capabilities. The scheme is expected to generate around 60,000 direct jobs during its five-year tenure, according to an official release issued by the Ministry of Electronics and IT on August 21, 2026.
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Vaishnaw Pushes for Stronger Indian Ownership of Brands and IP
Union Minister for Electronics and Information Technology Ashwini Vaishnaw said that the Mobile Phone Manufacturing Scheme will provide a significant impetus to the development of Indian-owned mobile brands, intellectual property and design. Emphasising the importance of genuine Indian ownership, the Union Minister said that the design, intellectual property and brand must be Indian-owned and capable of competing with the best products in the respective market segment.
Vaishnaw further stated that the Government will undertake a meticulous evaluation to ensure that the intellectual property is genuinely Indian-owned, while non-fiscal and other support measures will be developed in consultation with the industry.
India’s Electronics Manufacturing Sector Expands Under Make in India
According to the Ministry, the electronics manufacturing sector has expanded significantly under the Prime Minister’s Make in India initiative, with production growing seven-fold and exports increasing eleven-fold since 2014-15.
“The electronics manufacturing sector has emerged as a major employer, especially for young men and women from far-flung villages, with several manufacturing plants employing more than 5,000 people at a single location, and employment at some facilities reaching 20,000. This growth has been primarily driven by mobile phone manufacturing, with mobile phones now constituting a major share of India’s electronics production and exports and playing a critical role in strengthening India’s position in global value chains,” the Ministry said.
