India’s Mobile Phone Manufacturing Scheme gets Rs 62,500 cr push; Rs 39 lakh cr output & 60,000 jobs expected

Rs 62,500-crore push for next phase of mobile manufacturing

The Centre said the MPMS is designed to scale up mobile phone production, strengthen domestic supply chains, improve global competitiveness and encourage the development of Indian technology and smartphone brands. Under the scheme, manufacturers will receive performance-linked incentives ranging from 2.25% to 5% on eligible sales of mobile phones manufactured in India.

Companies sourcing key components and sub-assemblies domestically will be eligible for an additional incentive of up to 1.5%, while firms investing in product design and research & development (R&D) for Indian brands can claim a further 3% incentive. The government also said the initiative aims to promote technological self-reliance, generate intellectual property, and create globally competitive Indian mobile brands.

Rs 39 lakh crore production target

According to the government, the scheme is expected to generate cumulative mobile phone production worth around Rs 39 lakh crore during its five-year tenure. The Centre also expects a major increase in smartphone exports while creating around 60,000 direct jobs, particularly in electronics manufacturing clusters across the country.

According to IT Minister Ashwini Vaishnaw, the scheme is expected to strengthen India’s integration into global electronics value chains while boosting manufacturing-led economic growth.

India’s mobile manufacturing story

The government highlighted that India’s electronics manufacturing sector has witnessed remarkable expansion over the past decade under the Make in India initiative.

According to official data, electronics manufacturing has grown seven-fold since FY2014-15 while electronics exports have increased 11 times during the same period. The data also revealed that India is now the world’s second-largest mobile phone manufacturer by volume. Around 99.2% of mobile phones used in India are now manufactured domestically.

In 2025, smartphones emerged as India’s largest exported product category, overtaking traditional export leaders such as diesel fuel and cut diamonds. The government said mobile phone manufacturing has become the anchor of India’s electronics ecosystem while generating large-scale employment, particularly for young workers in manufacturing facilities across the country.

Vaishnaw highlights sector’s transformation

Briefing reporters after the Cabinet decision, Union Electronics and Information Technology Minister Ashwini Vaishnaw said India’s mobile manufacturing ecosystem has undergone a dramatic transformation over the last decade.

“In the last 10 years, there has been a massive change in the mobile electronics ecosystem. Smartphones are now the single largest export item; they were not even among the top 100 export items a decade ago,” he said.

Vaishnaw added that India now manufactures around 125 crore mobile phones annually, describing electronics manufacturing as a gateway to developing capabilities in advanced sectors. “Countries that manufacture mobiles also advance in manufacturing aviation, space industries and so on,” he said.

Highlighting the success of the previous PLI scheme, the minister said the government had disbursed around Rs 19,000 crore in incentives under PLI 1.0, while collecting nearly Rs 25,000 crore in taxes, indicating a positive fiscal return alongside the expansion of manufacturing capacity.

With the launch of MPMS, the government is now seeking to build on the gains of the PLI programme by encouraging higher domestic value addition, expanding exports and nurturing home-grown technology and smartphone brands.