Government Rolls Out Incentives to Boost Domestic Mobile Phone Output

The Cabinet, led by Prime Minister Narendra Modi, approved the Mobile Phone Manufacturing Scheme (MPMS) with an allocation of ₹62,500 crore. Spanning five financial years from 2026‑27 to 2030‑31, the scheme seeks to reinforce India’s handset supply chain, raise its competitive edge on the world stage, and encourage Indian brands through design and R&D support.

Eligible manufacturers can claim incentives ranging between 2.25 % and 5 % of qualified sales of phones produced in the country. An extra 1.5 % incentive is designated for domestic sourcing of major components and sub‑assemblies, while a further 3 % is granted for product design and research tied to eligible sales.

Officials project that the scheme could generate mobile‑phone production worth about ₹39 lakh crore and significantly lift export volumes. It is also expected to create close to 60,000 direct jobs, contributing to employment generation and economic growth.

The move builds on the success of the Make in India campaign, under which electronics manufacturing has expanded seven‑fold and exports have surged eleven‑fold since the 2014‑15 fiscal year. India now ranks second globally in mobile‑phone manufacturing by volume, with 99.2 % of phones used in the country built domestically. The MPMS replaces the Production‑Linked Incentive scheme that concluded on 31 March.