The Centre has notified a Rs 62,500-crore ‘Mobile Phone Manufacturing Scheme (MPMS)‘ geared toward taking India’s mobile-phone manufacturing to about Rs 39 lakh crore over 5 years, elevating exports to round Rs 15 lakh crore, and creating an estimated 60,000 direct jobs.
The scheme shifts coverage focus past merely assembling handsets in India, because it provides incentives for regionally made elements, Indian-owned mental property, home design and analysis, and globally aggressive Indian cellular manufacturers.
Electronics and IT Minister Ashwini Vaishnaw mentioned India might see its first robust, genuinely Indian-owned smartphone manufacturers emerge inside 10–14 months, probably by mid-2027. He additionally indicated that Apple might broaden its Indian manufacturing past iPhones, whereas India seeks a bigger position in world electronics supply chains.
Rs 62,500 crore scheme goals for Rs 39 lakh crore manufacturing
MPMS has a budgetary outlay of round Rs 62,500 crore and can function for 5 monetary years—from 2026-27 to 2030-31. It replaces the Production-Linked Incentive scheme for large-scale electronics manufacturing, whose tenure ended on March 31, 2026.
The federal government expects the programme to assist almost double the cumulative worth of mobile-phone manufacturing throughout its tenure. The goal is roughly Rs 39 lakh crore, in contrast with roughly Rs 20 lakh crore underneath the sooner section of mobile-manufacturing incentives.
The plan additionally seeks to double the worth of mobile-phone exports to round Rs 15 lakh crore, from about Rs 7.5 lakh crore achieved underneath the earlier scheme. The primary concept is to make sure that a larger share of the worth of each cellphone—elements, design, engineering, software-linked mental property, and manufacturing—stays inside India.
Two goal segments: Massive producers and Indian manufacturers
The scheme has two goal segments. The primary is for large-scale handset producers and electronics manufacturing companies, or EMS, corporations. The second is for Indian mobile-phone manufacturers with Indian possession, home mental property, and in-house design and analysis functionality.
- Goal Section 1 (TS1) helps giant mobile-phone producers and EMS companies registered in India. Incentives will probably be 2.75% in 2027 and 2028, 2.5% in 2029 and 2030, and a couple of.25% in 2031.
- Goal Section 2 (TS2) helps eligible Indian-owned cellular manufacturers. It provides a 5% incentive on eligible gross sales, plus an extra 3% for Indian design and R&D.
All eligible candidates also can obtain an extra incentive of as much as 1.5% for home sourcing of key elements and sub-assemblies. The component-linked incentives vary from 0.2% to 0.5% and canopy regionally made objects resembling show modules, digital camera modules, enclosures, batteries, Common Serial Bus (USB) cables, and connectors.
Further Incentive for sourcing key elements in India
The extra local-sourcing incentive is designed to deepen home worth addition slightly than reward remaining meeting alone. To assert it, the related elements should be localised for at the least 25% of the entire cellphones manufactured by the applicant in a monetary yr.
That is vital as a result of India has already develop into a serious mobile-phone manufacturing location, however a major share of high-value elements has traditionally been imported. By rewarding native procurement of shows, batteries, digital camera modules, and different sub-assemblies, the federal government goals to construct a stronger home provider base.
Vaishnaw mentioned, “India has already crossed the 25–28% home value-addition vary, whereas the very best worth addition constructed by mature manufacturing economies over a long time is mostly round 38–40%.” He mentioned MPMS is structured to enhance India’s place additional throughout its five-year tenure.
Strict guidelines for Indian-owned manufacturers and home IP
Essentially the most distinctive a part of the scheme is TS2, which is geared toward creating Indian-owned manufacturers, patents, product design and analysis functionality. Eligible Indian manufacturers will obtain a 5% incentive on qualifying gross sales and may declare an additional 3% incentive for Indian design and R&D. They will even obtain non-financial help from the federal government. Nevertheless, the federal government has set strict situations to forestall companies from presenting imported or copied designs as Indian know-how.
To qualify as an Indian model, an organization should:
- Be registered or integrated in India.
- Maintain its mental property and trademark in India.
- Have administration management held by Indian residents.
- Have greater than 51% Indian shareholding.
- Keep in-house design and R&D capabilities in India.
- Have at the least Rs 1,000 crore turnover in 2025-26.
Vaishnaw mentioned the federal government would scrutinise the possession of the design and mental property earlier than approving corporations for advantages. “The design must be your personal design. It can’t simply be a copycat. They need to provide you with the design and show that the IP is their very own,” he mentioned
Cellular Cellphone Manufacturing Scheme is formally launched 🇮🇳📱
It should
✅ Double cell phone manufacturing
✅ Help Indian IPs, Indian design, Indian model pic.twitter.com/8E62Js6RkJ— Ashwini Vaishnaw (@AshwiniVaishnaw) August 21, 2026
He mentioned three potential Indian gamers had been working in the direction of merchandise that would arrive in about 10–14 months. The federal government has not publicly named the businesses, citing market sensitivity.
Excessive thresholds for big companies
For TS1, mobile-phone makers and contract producers should be registered in India and have reported at the least Rs 10,000 crore turnover in 2025-26. Current manufacturers should additionally meet annual incremental gross sales thresholds of Rs 5,000 crore above their 2026 gross sales base.
The brink gross sales requirement rises over the scheme interval:
- 2027: Rs 5,000 crore above 2026 gross sales.
- 2028: Rs 10,000 crore above 2026 gross sales.
- 2029: Rs 15,000 crore above 2026 gross sales.
- 2030: Rs 20,000 crore above 2026 gross sales.
- 2031: Rs 25,000 crore above 2026 gross sales.
A brand new model turns into eligible underneath the manufacturing section solely after attaining complete annual Indian gross sales of Rs 10,000 crore. In distinction, Indian manufacturers underneath TS2 don’t face a minimal threshold-sales requirement, although they need to meet the possession, IP and R&D standards. Candidates underneath the Indian-brand section might obtain a one-year gestation interval to ascertain operations and meet the scheme’s growth necessities.
Apple and Google anticipated to develop Indian manufacturing
Vaishnaw indicated that Apple’s India presence might develop past iPhone manufacturing. Requested whether or not Apple might start making extra merchandise resembling iPads or Macs in India, he replied “sure,” signalling that the federal government expects a wider Apple {hardware} footprint over time.
The minister additionally mentioned the federal government expects Google to shift a considerable portion of its export-oriented gadget manufacturing from China to India. Collectively, such strikes might assist India safe a bigger position not solely within the home handset market but in addition in world manufacturing and export networks.
India is already the world’s second-largest mobile-phone producer by quantity, in accordance with the federal government. It says 99.2% of cellphones utilized in India at the moment are made in India, whereas smartphones grew to become the nation’s largest export product class in 2025, shifting forward of merchandise resembling diesel and lower diamonds.
From meeting hub to product and IP possession
The sooner PLI programme helped India construct manufacturing scale, appeal to world smartphone producers and create giant electronics-production services. The federal government says electronics manufacturing has grown seven-fold and exports eleven-fold since 2014-15, with a number of factories using 1000’s of employees, together with younger folks from smaller cities and villages.
However MPMS is meant to deal with the following problem because it’s shifting from assembly-led development to possession of merchandise, elements, know-how, and types. Electronics and IT Secretary S Krishnan described this as an effort to create technological sovereignty and strategic autonomy.
“For Indian manufacturers, to make them world, we try to have a look at technological sovereignty, strategic autonomy, seize larger financial worth, and in addition to construct our personal merchandise and mental property,” Krishnan mentioned.
The Ministry of Electronics and Information Technology can be anticipated to situation detailed implementation tips individually. A challenge administration company will administer the scheme, after which purposes and collection of eligible corporations are anticipated to start.
