Centre Notifies ₹62,500 Cr Mobile Manufacturing Scheme To Build Indian Brands

The Ministry of Electronics and Information Technology (MeitY) has notified the ₹62,500 Cr Mobile Phone Manufacturing Scheme (MPMS) to expand domestic production, deepen local value addition, and support Indian-owned mobile phone brands. 

The notification comes more than a month after the Union Cabinet approved the scheme on July 15. The five-year programme will run from FY27 through FY31 and succeeds the PLI scheme for large-scale electronics manufacturing (LSEM) , whose tenure ended on March 31, 2026. 

Under MPMS, the government will offer differentiated incentives ranging from 2.25% to 5% to eligible mobile phone manufacturers and electronics manufacturing services (EMS) providers. 

Indian brands will be eligible for an incentive of 5%, along with an additional 3% for Indian design and R&D. They will also receive non-fiscal support under the scheme. 

Companies across both segments can claim an additional incentive of up to 1.5% for sourcing specified components and sub-assemblies domestically. To qualify, localised components must be used in at least 25% of the total mobile phone units manufactured by the applicant during a financial year. 

MPMS has two target segments: one aimed at expanding mobile phone manufacturing and the other at supporting Indian mobile phone brands. 

Under the manufacturing segment, applicants must be registered in India and have recorded a minimum turnover of ₹10,000 Cr in FY26. Existing brands will need to generate incremental annual sales of at least ₹5,000 Cr over their FY26 base. 

A new brand will become eligible after achieving annual sales of ₹10,000 Cr in India and will subsequently have to meet the ₹5,000 Cr annual incremental sales threshold.

Under the Indian-brand segment, applicants must have recorded a minimum turnover of ₹1,000 Cr in FY26. Eligible companies may also be granted a gestation period of one year.

To qualify as an Indian brand, a company must be registered or incorporated in India, hold its intellectual property and trademarks in the country, and have management control vested with Indian citizens. More than 51% of its shareholding must also be held by Indian citizens, while its design and R&D capabilities must be located in India.

Union electronics and IT minister Ashwini Vaishnaw said the government would closely evaluate applicants to ensure that their brands, designs, and intellectual property are genuinely Indian-owned.

He added that India could see its first strong indigenous mobile phone brand by mid-2027.

The government expects MPMS to drive cumulative mobile phone production of about ₹39 Lakh Cr during its five-year tenure, significantly increase exports, and generate around 60,000 direct jobs. 

India’s Mobile Manufacturing Push

The scheme comes as India seeks to move beyond assembling mobile phones and increase domestic value addition across the supply chain.

According to MeitY, India is now the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in the country being made domestically. Smartphones also emerged as India’s largest exported product category in 2025.

Companies ranging from Apple and Samsung to Google and Nothing have made India one of their manufacturing hubs.

Mobile phone production rose from ₹18,900 Cr in FY15 to ₹6.27 Lakh Cr in FY26, while exports jumped from ₹1,566 Cr to ₹2.60 Lakh Cr during the same period. The government said the growth was driven largely by the PLI-LSEM scheme, which helped establish India as a major mobile manufacturing and export hub.

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