Cabinet clears Rs 62,500 crore Mobile Phone Manufacturing Scheme

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New Delhi, July 15

Union Cabinet chaired by the Prime Minister Narendra Modi  on Wednesday  approved the Mobile Phone Manufacturing Scheme (MPMS) with a budget of Rs 62,500 crore. The five-year initiative, running from 2026-27 to 2030-31, aims to expand production, increase the use of locally made components and make India more competitive in the global electronics market.

The scheme will provide incentives to companies manufacturing mobile phones in India, with support ranging from 2.25 percent  to 5 percent on eligible sales. Additional incentives will encourage firms to source key components domestically and invest in product design and research.

Beyond increasing factory output, the government said that  the programme is aimed at building Indian technology brands, encouraging innovation and helping create patents through research and development.

Officials estimate that during the scheme period, India’s cumulative mobile phone production could reach nearly Rs 39 lakh crore, with a major boost expected in exports. The initiative is also projected to create around 60,000 direct jobs, offering new opportunities in the growing electronics sector.

The move builds on India’s rapid rise as a mobile manufacturing hub, with the country already emerging as one of the world’s largest producers of smartphones. The latest scheme is aimed at taking that growth further — from assembling devices to designing and developing technologies made in India.