In a major push to strengthen India’s electronics manufacturing sector, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS). The new initiative is designed to accelerate domestic smartphone production, encourage innovation, boost exports, and position India as a global leader in mobile manufacturing.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw announced the Cabinet’s approval on Wednesday, confirming that the government has cleared the second phase of its incentive programme for mobile phone manufacturing.
₹62,500 Crore Scheme to Strengthen India’s Smartphone Industry
The newly approved Mobile Phone Manufacturing Scheme (MPMS) will run for five years, from FY 2026-27 to FY 2030-31.
According to the government, the scheme aims to:
- Increase mobile phone manufacturing in India
- Promote Indian smartphone brands
- Encourage research, design, and innovation
- Reduce dependence on imported technology
- Generate employment across the electronics sector
- Expand India’s share in global smartphone exports
The initiative also seeks to help Indian companies develop their own intellectual property and patents in product design and research & development (R&D), supporting the country’s goal of achieving technological self-reliance.
Incentives for Manufacturing, Local Sourcing and R&D
Under the MPMS, eligible manufacturers will receive production-linked incentives ranging from 2.25% to 5% based on qualifying mobile phone sales.
To encourage greater localisation, the government will also provide:
- Up to 1.5% additional incentive for sourcing key components and sub-assemblies from within India.
- An extra 3% incentive for companies investing in product design and research & development to build strong Indian smartphone brands.
These incentives are intended to strengthen the entire mobile manufacturing ecosystem, from component production to finished devices.
Government Expects Massive Growth in Production and Exports
The Centre estimates that the scheme could significantly expand India’s mobile manufacturing capacity over the next five years.
According to the official statement:
- Total mobile phone production is expected to reach nearly ₹39 lakh crore during the scheme period.
- Mobile phone exports are projected to witness substantial growth.
- Around 60,000 direct jobs are expected to be created across the electronics manufacturing value chain.
The government believes the programme will contribute to economic growth while further establishing India as a major global manufacturing hub.
Smartphones Become India’s Largest Export Category
India’s smartphone industry has witnessed remarkable growth over the past few years.
According to government data, smartphones became India’s largest exported product in calendar year 2025, with exports worth ₹2.62 lakh crore.
Apple, through its manufacturing partners in India, continues to account for a significant share of these exports, reflecting the country’s growing importance in global smartphone supply chains.
India Emerges as the World’s Second-Largest Mobile Phone Manufacturer
Government initiatives such as the Production Linked Incentive (PLI) scheme have transformed India’s electronics manufacturing landscape.
Today, India is the second-largest mobile phone manufacturer in the world, with more than 300 mobile manufacturing units operating across the country.
Mobile phone production has grown dramatically over the last few years:
- FY 2019-20: ₹2.14 lakh crore
- FY 2024-25: ₹5.5 lakh crore
This represents more than a two-fold increase in domestic production within five years.
Mobile Phone Exports Witness Eight-Fold Growth
India has also recorded exceptional growth in smartphone exports.
Exports increased from:
- ₹27,000 crore in FY 2019-20
to - ₹2 lakh crore in FY 2024-25
This nearly eight-fold jump highlights India’s emergence as a key global export destination for mobile devices.
From Importer to Global Export Hub
A decade ago, India relied heavily on imported mobile phones. Today, the country has transformed into a net exporter of smartphones, driven by policy support, increasing domestic manufacturing, and strong investments from global technology companies.
The newly approved ₹62,500 crore scheme is expected to further strengthen this momentum by encouraging local manufacturing, expanding exports, and promoting innovation-led growth.
Final Thoughts
The Cabinet’s approval of the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) marks another significant milestone in India’s ambition to become a global electronics manufacturing powerhouse. By offering incentives for production, domestic sourcing, and research & development, the government aims to create globally competitive Indian smartphone brands while boosting employment and exports.
If implemented successfully, the scheme could further cement India’s position as one of the world’s leading smartphone manufacturing and export destinations over the coming years.
Disclaimer: This article is based on official government announcements and publicly available information. The scheme’s implementation, incentive structure, and expected outcomes are subject to official guidelines and future policy updates.