PIB TrackerCabinet approves a Rs 62,500 crore Mobile Phone Manufacturing Scheme to deepen value addition and build Indian brands
The Union Cabinet cleared the Mobile Phone Manufacturing Scheme (MPMS) — a Rs 62,500 crore, five-year programme (FY2026-27 to FY2030-31) offering 2.25-5% incentives on eligible sales, extra support for domestic component sourcing and Indian-brand R&D — targeting ~Rs 39 lakh crore of cumulative production and ~60,000 direct jobs.
What happened
- The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with an outlay of Rs 62,500 crore.
- Its tenure is five years — FY2026-27 to FY2030-31 — to deepen domestic value addition and build Indian brands.
- It gives 2.25-5% incentives on eligible sales, plus up to 1.5% for domestic sourcing of key components and 3% for design/R&D.
- It targets ~Rs 39 lakh crore of cumulative production and about 60,000 direct jobs, with higher exports.
- It builds on 'Make in India' — electronics manufacturing up ~7x and exports ~11x since FY2014-15.
For Prelims
- MPMS: The Mobile Phone Manufacturing Scheme — a Rs 62,500 crore, five-year (FY2026-27 to FY2030-31) incentive scheme for making mobile phones in India.
- Differentiated incentives: 2.25-5% on eligible sales, + up to 1.5% for domestic component sourcing, and +3% for design/R&D (to build Indian brands).
- Value addition: The scheme pushes beyond final assembly toward component/sub-assembly manufacturing — deepening the domestic value chain.
- PLI link: It follows the Production Linked Incentive (PLI) scheme for large-scale electronics/mobile manufacturing that drove the earlier surge in output and exports.
- Scale: Expected ~Rs 39 lakh crore cumulative production and ~60,000 direct jobs over the tenure.
- Make in India: Electronics manufacturing has grown ~7x and exports ~11x since FY2014-15 — mobiles are now a top export item.
For UPSC: A core industrial-policy example — moving from assembly to deeper value addition and home-grown brands in electronics, India's fastest-growing manufacturing/export segment. Use it for 'Make in India', the PLI-to-MPMS evolution, value addition and supply-chain resilience, and the jobs-and-exports payoff.
What it is NOT: This is a Cabinet-approved incentive scheme (an outlay and design), not a subsidy transfer or a completed investment. The production and jobs figures are expected outcomes over five years, not current numbers.
For Mains
Syllabus: GS3.8 · GS3.13 · Linkage L2
Anchor
Deepening electronics value addition — from assembly to components and Indian brands, for jobs and export competitiveness.
Substantiation (data)
MPMS: Rs 62,500 cr, FY2026-27 to FY2030-31; 2.25-5% incentives + up to 1.5% (sourcing) + 3% (design/R&D); ~Rs 39 lakh cr production and ~60,000 jobs expected; electronics up ~7x, exports ~11x since FY2014-15.
Exemplification
The PLI-to-MPMS shift toward component-level manufacturing and design-led Indian brands.
Problematisation
Import dependence for components/inputs, thin value addition in pure assembly, and global competition (e.g. Vietnam, China) remain constraints.
Way-forward
Anchor component ecosystems, incentivise design/R&D and IP, and use scale to move up the electronics value chain.
Position
Deeper value addition and Indian brands are key to converting India's electronics assembly base into durable manufacturing and export strength.
Deploys into: Economy — industrial policy and liberalisation + electronics (GS3.8, GS3.13) · 'Make in India', the PLI-to-MPMS evolution, value addition and supply-chain resilience in mobile manufacturing.
Cabinet / Ministry of Electronics & IT · 2026-07-15 · PRID 2284789 · PIB source ↗