Mobile Phone Manufacturing Scheme 2026: A Major Step Towards Making India a Global Electronics Hub
On August 21, 2026, the Central Government announced a five-year Mobile Phone Manufacturing Scheme (MPMS) worth ₹62,500 crore, effective from April 1, 2026, through the 2030-31 financial year. Its objectives include expanding mobile manufacturing, increasing domestic value addition, strengthening the supply chain, and establishing India as a global electronics manufacturing hub. The scheme comprises two target segments—one for mobile manufacturing and another for Indian brands—and includes provisions for additional incentives regarding the sourcing of domestic components as well as research and design. Mobile production worth approximately ₹39 lakh crore and the creation of 60,000 new direct jobs are projected over the policy period, making the scheme crucial for 'Atmanirbhar Bharat' (Self-Reliant India) and employment growth.
The Central Government announced the Mobile Phone Manufacturing Scheme (MPMS) on August 21, 2026. This is a five-year scheme worth ₹62,500 crore, aimed at developing India into a major hub for electronics and mobile phone manufacturing. Under the scheme, mobile phone manufacturing will be boosted through Production-Linked Incentives (PLI).
Scheme Duration and Key Objectives
The MPMS scheme will remain in effect from April 1, 2026, through the 2030-31 financial year. Its primary objectives are to expand mobile phone manufacturing, increase domestic value addition, and develop a robust domestic supply chain. This initiative will also strengthen India's global competitiveness in the electronics sector.
Two Target Segments of the Scheme
The scheme is divided into two key target segments. Target Segment-1 (TS1) is dedicated to mobile phone manufacturing, while Target Segment-2 (TS2) is designed to incentivize Indian mobile phone brands. A one-year waiting period provision has been included for applicants under TS2.
Encouraging Eligibility and Indian Ownership
This scheme will be available to mobile phone manufacturers and EMS companies registered in India. Under certain conditions, companies with a minimum turnover of ₹10,000 crore in the 2025-26 financial year may qualify. Additionally, there is a provision for eligibility for firms with 51% Indian ownership and a minimum turnover of ₹1,000 crore.
Additional Incentive of up to 1.5% for Domestic Components
Under the scheme, an additional incentive of up to 1.5% will be provided for sourcing key components and sub-assemblies domestically. To qualify for this, it will be mandatory to use locally manufactured components in 25% of the total mobile phone units produced in a financial year. This includes critical parts such as camera modules, display assemblies, mechanical components, and battery cells.
Boosting Employment, Production, and Indian Brands
Under the MPMS, Indian mobile brands are likely to receive incentives of up to 3% for domestic research and development and product design. Total mobile phone production in India is projected to reach approximately ₹39 lakh crore during the policy period. Furthermore, around 60,000 new direct jobs are expected to be created, making this scheme pivotal for employment generation, manufacturing, and the 'Atmanirbhar Bharat' (Self-Reliant India) initiative.
