Why Modi Govt's New Mobile Phone Manufacturing Scheme Could Be A Game Changer For India

Published 15 July 2026 · india

Why Modi Govt's New Mobile Phone Manufacturing Scheme Could Be A Game Changer For India Published By, Last Updated: July 15, 2026, 17:35 IST The

Why Modi Govt's New Mobile Phone Manufacturing Scheme Could Be A Game Changer For India Published By, Last Updated: July 15, 2026, 17:35 IST The Cabinet has approved a ₹62,500-crore mobile manufacturing scheme aimed at creating 60,000 jobs and generating ₹39 lakh crore in production over five years. The new scheme builds on a decade of remarkable growth in India's electronics sector under the Make in India initiative. (Photo: AFP file) In a major push to strengthen India’s electronics manufacturing ecosystem, the Union Cabinet on Wednesday approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore. The new scheme comes as India seeks to build on its success in mobile phone manufacturing and move beyond assembly operations towards higher domestic value addition, stronger supply chains, indigenous technology development, and globally competitive Indian brands. The government believes the initiative could help transform India from a major manufacturing hub into a global leader in mobile phone design, innovation, and exports. What Is The New Mobile Phone Manufacturing Scheme? The MPMS will run for five years, from FY 2026-27 to FY 2030-31, and provide financial incentives to companies manufacturing mobile phones in India. Under the scheme Manufacturers will receive incentives ranging from 2.25% to 5% on eligible sales. An additional incentive of up to 1.5% will be offered for sourcing key components and sub-assemblies domestically. Indian brands investing in product design and research and development (R&D) will receive an extra 3% incentive. The scheme aims to encourage companies not only to manufacture phones in India but also to develop local supply chains, invest in innovation, and create intellectual property within the country.

Why Is MPMS Being Seen As A Game Changer? The government’s objective is to move India up the value chain. While India has emerged as one of the world’s largest mobile phone manufacturers, much of the industry’s growth has been driven by assembly operations. The new scheme seeks to deepen domestic value addition by encouraging the production of components, sub-assemblies, and homegrown technologies. The focus on Indian brands and R&D is particularly significant, as it could help create indigenous technology, patents, and globally competitive products. If successful, the scheme could reduce India’s dependence on imported components and make the country a more resilient electronics manufacturing hub. Massive Production And Jobs Generation The government has set ambitious targets for the scheme. During its five-year tenure, cumulative mobile phone production is expected to reach approximately ₹39 lakh crore, with a significant increase in exports. The scheme is also projected to generate around 60,000 direct jobs, providing a major boost to employment in the manufacturing sector. The initiative aims to strengthen India’s position in global electronics supply chains while contributing to economic growth and export earnings. India’s Mobile Manufacturing Success Story The new scheme builds on a decade of remarkable growth in India’s electronics sector under the Make in India initiative. In 2014-15, mobile phone production in India stood at just ₹18,900 crore. By 2025-26, it had surged to ₹6.27 lakh crore, representing a more than 33-fold increase. Exports have grown even faster. Mobile phone exports rose from ₹1,566 crore in 2014-15 to ₹2.60 lakh crore in 2025-26, a jump of more than 165 times.