Mobile Phone Manufacturing Scheme (MPMS) (Government Schemes & Initiatives)
Mobile Phone Manufacturing Scheme (MPMS) (Government Schemes & Initiatives)
Why In News:
The Ministry of Electronics and Information Technology (MeitY) has notified the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to strengthen India's position as a global manufacturing and export hub for mobile phones.
About the Mobile Phone Manufacturing Scheme
MPMS was notified on 21 August 2026 with a total outlay of ₹62,500 crore and will operate from FY 2026–27 to FY 2030–31.
The scheme is designed to provide continued policy support to India's rapidly expanding mobile phone manufacturing ecosystem.
It aims to generate approximately ₹39 lakh crore of cumulative mobile phone production during the scheme period and create around 60,000 direct jobs.
The broader objective is to move beyond assembly towards higher domestic value addition, stronger Indian brands, component localisation and greater integration with Global Value Chains (GVCs).
Scheme Structure
The scheme has two principal segments to provide differentiated incentives according to the type and scale of manufacturers.
Target Segment 1 (TS1)
TS1 provides incentives ranging from 2.25% to 5% of eligible sales, with the rate differentiated according to the applicable investment and production parameters.
Target Segment 2 (TS2)
TS2 provides a 5% incentive for eligible Indian brands, with an additional 3% incentive for domestic design and R&D, encouraging the development of indigenous capabilities.
Manufacturers can also receive an additional incentive of up to 1.5% for achieving specified levels of domestic sourcing of key components and sub-assemblies.
Eligibility
Manufacturers are required to meet a minimum turnover threshold of ₹10,000 crore in FY 2025–26, ensuring that the scheme targets companies with substantial manufacturing and investment capacity.
MPMS and Electronics Components Manufacturing Scheme (ECMS)
MPMS focuses primarily on finished mobile phones, while the Electronics Components Manufacturing Scheme (ECMS) addresses the upstream component ecosystem.
ECMS was notified in April 2025 to promote domestic manufacturing of electronic components and strengthen critical links in the electronics value chain.
Its outlay was increased from ₹22,919 crore to ₹40,000 crore in Union Budget 2026–27, reflecting the government's greater emphasis on component localisation.
Together, MPMS and ECMS seek to create a more integrated electronics ecosystem—from components and sub-assemblies to finished mobile phones and exports.