Government Notifies ₹62,500 Crore Mobile Phone Manufacturing Scheme (MPMS)

Key Highlights:

• ₹62,500 crore outlay: MeitY has notified the Mobile Phone Manufacturing Scheme (MPMS) for FY27-FY31.
• 2.25%-5% incentive: Offered to mobile phone manufacturers, including EMS players, under Target Segment 1.
• +1.5% for local sourcing: Additional incentive for domestic sourcing of key components and sub-assemblies.
• 5%+3% for Indian brands: Target Segment 2 supports Indian-owned mobile brands, including R&D and design.
• ₹39 lakh crore production target: Cumulative mobile phone production expected over the scheme's five-year tenure.
• ~60,000 direct jobs: The scheme is expected to generate direct jobs.

Key Observations:

• MPMS follows the PLI-LSEM scheme (ended March 2026) and is intended to support continued growth in India's mobile manufacturing growth.
• India is the world's second-largest mobile phone manufacturer, with smartphones being a major export category in 2025.
• The scheme adds emphasis on domestic component sourcing and Indian brand IP, with a focus on strengthening domestic value addition and the mobile manufacturing ecosystem.

Source: Press Information Bureau (PIB), MeitY, 21 August 2026.

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