Mobile Phone Manufacturing Scheme (MPMS)

Ten years ago, India barely made its own phones. Today, 99.2% of the phones Indians use are made at home, and a fresh ₹62,500 crore scheme wants to push even further.

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Indian Economy · IndEco0198

MPMS

Mobile Phone Manufacturing Scheme, 2026-31

₹62,500 Cr

total outlay

5 Years

FY 2026-27 to 2030-31

~60,000

expected direct jobs

Base incentive (eligible sales)2.25%–5%

Domestic component sourcing bonusup to 1.5%

Indian-brand design & R&D bonus3%

Succeeding a proven scheme

MPMS takes over right where PLI-LSEM left off (its tenure ended 31 March 2026). It keeps rewarding output, but adds fresh bonuses for local components and homegrown brands — not just assembly.

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Must Know

• The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) on 15 July 2026, chaired by PM Narendra Modi.
• MPMS carries a total outlay of ₹62,500 crore.
• The scheme runs for 5 years, from FY 2026-27 to FY 2030-31.
• MPMS gives incentives on eligible sales for making mobile phones in India, at differentiated rates from 2.25% to 5%.
• It adds up to 1.5% more for sourcing key components and sub-assemblies domestically, and 3% more for design and R&D behind Indian brands.
• MPMS succeeds the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), whose tenure ended on 31 March 2026.

Good to Know

• Over the scheme’s 5-year tenure, cumulative mobile phone production in India is expected to reach roughly ₹39,00,000 crore.
• MPMS is expected to generate about 60,000 direct jobs.
• India is now the world’s second-largest mobile phone manufacturer by volume. As of 2026, 99.2% of mobile phones used in India are made domestically.
• Smartphones became India’s single largest exported product category in 2025. They overtook older leading exports like diesel fuel and cut diamonds.
• Since FY 2014-15, under the Make in India push, electronics manufacturing has grown 7 times over. Electronics exports have grown even faster, 11 times over in the same period.
• Beyond MPMS’s own output incentives, the scheme specifically targets brand-building. It wants Indian companies to hold their own patents in mobile design and R&D, not just assemble other brands’ phones.

Test Yourself

Please wait…

1. The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) on which date?

1 April 2026

15 July 2026

31 March 2026

1 January 2027

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Great to Know

• MPMS sits within India’s broader electronics manufacturing push, which has grown into a major national employer well beyond just mobile phones.
• Unlike its predecessor PLI Scheme, MPMS builds in a dedicated bonus for Indian-brand design and R&D. This marks a shift from rewarding assembly volume alone toward rewarding genuine domestic ownership of the product.
• The scheme’s layered incentive structure — a base rate, plus bonuses for local sourcing and for homegrown brands — is a deliberate design choice. It nudges manufacturers up the value chain, not just toward higher output.
• Mobile phone manufacturing already transformed once, from an import-dependent sector to a 99.2%-domestic one. MPMS now tries to repeat that at a deeper level, in components and brands, not just final assembly.