The government on Friday notified the ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS), a five-year programme aimed at expanding mobile phone production in India. The scheme will come into effect from April 1, 2026, and continue through FY31. It seeks to increase domestic value addition, strengthen local manufacturing and help Indian mobile phone brands expand into global markets.

The scheme targets cumulative mobile phone production of around ₹39 lakh crore over its five-year tenure. Electronics and IT Minister Ashwini Vaishnaw said the programme is also expected to create nearly 60,000 direct jobs. He said electronics manufacturing in India has increased sevenfold since 2014, while electronics exports have grown 11 times during the same period.

Vaishnaw said India has moved from being a mobile phone importer to a net exporter. The country is now the world's second-largest mobile phone manufacturer by volume. He added that 99.2% of mobile phones used in India are now manufactured within the country.

The MPMS will offer manufacturers incentives linked to their eligible sales of mobile phones made in India. The incentives will range from 2.25% to 5%. Companies can also receive an additional incentive of up to 1.5% for sourcing specified components and sub-assemblies from domestic suppliers. The government has designed these benefits to encourage manufacturers to increase the share of locally sourced parts in their products.

The scheme also focuses on product design and research and development. Companies can receive an additional 3% incentive on eligible sales for investments in product design and R&D. The government wants this support to encourage Indian companies to develop their own products, patents and brands. The focus is also on building stronger Indian intellectual property and increasing the global presence of domestic companies.

Indian mobile phone brands will be eligible for incentives of up to 5%. The government aims to use the scheme to help these brands scale up production and enter international markets. The programme has separate eligibility requirements for mobile phone manufacturers and electronics manufacturing services (EMS) companies.

Mobile phone manufacturers must have reported a minimum turnover of ₹10,000 crore in FY26 to qualify under the scheme. EMS companies will need a minimum turnover of ₹1,000 crore. The government has also set specific requirements for existing Indian brands that want to claim incentives. Such companies will need to record incremental sales of ₹5,000 crore over their FY26 sales in every year in which they seek benefits under the scheme.

New applicants under the Indian-brand category will receive a one-year gestation period. This will give them time to establish and expand their operations before they become eligible for incentives. The structure is aimed at supporting companies that have the potential to build large-scale manufacturing operations and develop Indian brands.

The new scheme follows the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing, which ended on March 31, 2026. The earlier programme played a major role in expanding India's mobile phone manufacturing capacity. Under PLI 1.0, mobile phone production reached ₹11.61 lakh crore, exceeding the target of ₹8.12 lakh crore.

Investment under the earlier PLI programme also crossed ₹20,500 crore against the original target of ₹7,000 crore. The government now plans to build on these gains through the MPMS and further expand India's electronics manufacturing base.

MeitY Secretary S. Krishnan said domestic value addition in mobile phone manufacturing has increased from around 15% to 23%. He also said about $14 billion has been invested across India's electronics ecosystem since the launch of PLI 1.0. These investments have supported nearly 12 lakh jobs across the sector.

The government expects the new scheme to take India's mobile phone manufacturing sector to a larger scale. Its focus extends beyond increasing production. It also seeks to strengthen domestic sourcing, promote research and development and support Indian brands in international markets. With a ₹62,500-crore outlay and a production target of around ₹39 lakh crore, the MPMS marks the next phase of India's push to become a major global electronics manufacturing hub.