MPMS
India goes big on smartphones: Indian Cabinet clears Rs 62,500 crore manufacturing scheme
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore.
The government has launched the scheme to further scale up mobile phone production, deepen domestic value addition, strengthen supply-chain resilience and enhance India's global competitiveness in electronics manufacturing.
The MPMS also aims to support the growth of Indian brands, promote technological sovereignty, capture greater economic value and encourage the creation of Indian patents in design and research and development (R&D).
The scheme will run for five years, from FY 2026-27 to FY 2030-31.
Under the scheme, manufacturers will receive incentives on eligible sales of mobile phones manufactured in India at differentiated rates ranging from 2.25 percent to 5 percent.
The scheme also provides an additional incentive of up to 1.5 percent linked to the domestic sourcing of key components and sub-assemblies.
To support the development of Indian brands, an additional incentive of 3 percent on eligible sales will be provided for product design and R&D.
During the scheme's tenure, cumulative mobile phone production in the country is expected to reach approximately Rs 39 lakh crore, alongside a significant increase in mobile phone exports.
The Indian government said in a statement that the scheme is also expected to generate around 60,000 direct jobs, contributing to economic growth and employment generation while strengthening India's position as a global electronics manufacturing hub.
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