The MPMS replaces the five-year production-linked incentive (PLI) scheme for cell units, which led to 2025-26. The brand new scheme has been tweaked to incentivise exports and push localisation by encouraging distributors to purchase parts from home suppliers.
Talking to Enterprise Customary, Amber Enterprises Chief Govt Officer and Whole-Time Director Jasbir Singh, whose firm is among the largest unique design manufacturers/unique tools producers (OEMs) of air conditioners within the nation, stated, “We’re trying into the notification and the effective print to see whether or not we’re eligible for it. If we’re, we are going to certainly think about it.”
Amber Enterprises, in June this yr, entered into a producing collaboration with Oppo Mobiles India to assemble three manufacturers — Oppo, Realme, and OnePlus — owned by Chinese language big BBK Electronics. It’s the firm’s maiden entry into the cell phone sector. Whereas trial manufacturing is anticipated to begin in March 2027, the corporate is taking a look at making 8-9 million telephones every year within the first yr, rising to 13-15 million within the second yr.
Lava Worldwide Chairman and Managing Director (MD) Hari Om Rai additionally confirmed that the corporate will apply below the motivation class for Indian manufacturers below the scheme. “Sure, we’re planning to use below the scheme for our personal model, Lava, which we manufacture,” stated Rai.
NxtQST, based by Madhav Sheth, former CEO of Realme, additionally confirmed that it’s going to apply. Sheth stated, “We’re making use of for the scheme for an Indian model. We predict there’s a large scope, and, consequently, now we have already invested $10 million in growing our personal analysis and improvement (R&D) capabilities and employed over 600 engineers.”
Each Lava and Sheth will apply below the T2 class, which is supposed to assist Indian cell phone manufacturers. The federal government expects round three gamers to come back in below this class.
Beneath the scheme, firms should exhibit their very own R&D and design wherewithal, guarantee their mental property (IP) is integrated in India, and have Indians holding greater than 51 per cent of the stake within the firm.
Sources conscious of the event stated Dixon, one of many main smartphone OEMs within the nation, can be planning to use for eligibility below the scheme. The corporate was one of many few Indian firms that benefited from the sooner PLI scheme as effectively. The agency assembles telephones for Motorola, a part of the Lenovo group, that are additionally exported to markets such because the US. It additionally assembles telephones for Transsion Holdings, whose plant it acquired with a majority stake, with round 2 million telephones exported to Africa. Dixon additionally makes telephones for Chinese language big Xiaomi, however its large guess on exports might come from different manufacturers.
For example, it’s one in every of two distributors that assemble Google Pixel telephones within the nation. Google is taking a look at shifting its smartphone meeting enterprise from China from subsequent yr and shutting down manufacturing in that nation.
With round 400,000 telephones made in India, largely for the home market, there’s an expectation that a part of Google’s China enterprise might shift to India. At present, Vietnam accounts for 63 per cent of Google Pixel manufacturing, adopted by China, whereas India accounts for under 3 per cent.
Nonetheless, Dixon additionally has a chance to spice up exports following authorities clearance for it to arrange a three way partnership with Vivo, through which Dixon will maintain a 51 per cent stake, with the remainder held by Vivo, to solely assemble its telephones within the nation.
Vivo is the No. 1 participant within the nation by market share, with an 18 per cent share, in keeping with Omdia knowledge for April-June 2026. For Dixon, the deal would imply assembling one other 20-22 million telephones every year. Exports might add one other 3-4 million telephones.
Amber: First-time cell entrant, trying on the new scheme after its Oppo tieup
Dixon: Already a PLI-era workhorse; now trying to make use of the brand new scheme to deepen its cell manufacturing and export play
Lava and NxtQST: Looking for assist reserved for Indian cell manufacturers
