Mobile Phone Manufacturing Scheme (MPMS): New initiative to make India a global mobile manufacturing superpower
The Mobile Phone Manufacturing Scheme (MPMS) was approved by the Union Cabinet on 15 July 2026 with a budget of ₹62,500 crore, to be implemented from the financial year 2026-27 to 2030-31. Its objective is to encourage indigenous manufacturing, value addition, research and development (R&D) of mobile phones and key components and Indian brands. Under the scheme, performance-based financial incentives will be provided on eligible sales, domestic sourcing and innovation. This scheme is an important step towards making India a global mobile manufacturing and export hub by taking forward the success of PLI scheme.
The Mobile Phone Manufacturing Scheme (MPMS) was approved by the Union Cabinet on 15 July 2026. This performance-linked incentive scheme of ₹62,500 crore aims to increase local manufacturing of mobile phones and its key components in India, increase value addition, research and development (R&D) and encourage Indian brands. This scheme will be applicable from the financial year 2026-27 to 2030-31.
Key features of the scheme
Under this scheme, eligible mobile phone manufacturers will be given incentives ranging from 2.25% to 5% on eligible sales of mobile phones manufactured in India. There will be an additional incentive of up to 1.5% on domestic sourcing of spare parts. At the same time, Indian companies can be provided additional profit of up to 3% by investing in product design, research and development and brand building.
objectives of the plan
To increase indigenous manufacturing of mobile phones and its major components.
Reducing dependence on imported electronic components.
To increase Domestic Value Addition.
To develop a strong and flexible supply chain in the electronics sector.
To promote Indian brands, innovation, design and research.
To establish India as a global mobile manufacturing and export hub.
Relation and importance of PLI scheme
MPMS is the next phase of the success of the Production-Linked Incentive (PLI) scheme implemented for large-scale electronics manufacturing. Through PLI, India became the world's second largest mobile phone producer, mobile exports increased significantly and many global companies set up production units in India. MPMS now aims to promote high value addition, indigenous technology, research and global competitiveness rather than just limiting itself to assembly.
Importance from UPSC exam point of view
This scheme is an important initiative related to 'Make in India', 'Self-reliant India', 'Digital India' and industrial policy. This will be helpful in strengthening India's manufacturing sector, creating employment, increasing exports, attracting foreign investment and increasing India's participation in the global value chain. This topic is very important for GS Paper-3 (Indian Economy, Industry, Science & Technology, Government Policies).
