₹62,500-crore Mobile Phone Manufacturing Scheme notified

The Mobile Phone Manufacturing Scheme: what happened?

India assembles most of the phones it uses. But the brand, the design and many costly parts still come from abroad. The earlier PLI scheme built scale. This new scheme tries to push value addition deeper and create Indian phone brands that own their designs and patents.

• MeitY notified the MPMS with two target segments.
• The Minister said India may see its first strong indigenous mobile brand by mid-2027.
• He said the design, intellectual property and brand must be genuinely Indian-owned, and this will be checked carefully.
• Non-fiscal support for Indian brands will be worked out with industry.

Why a new scheme now?

• Electronics manufacturing has grown seven-fold and exports eleven-fold since FY 2014-15, led by mobile phones.
• India is the world’s 2nd largest mobile phone maker by volume; 99.2% of phones used in India are made in India.
• Smartphones became India’s single largest export category in 2025, ahead of diesel and cut diamonds.
• The PLI scheme for Large Scale Electronics Manufacturing (PLI-LSEM) ended on 31 March 2026.

Who is eligible?

• TS1: phone makers and EMS firms registered in India with turnover of at least ₹10,000 crore in FY 2025-26; existing brands must add ₹5,000 crore of sales each year.
• A new brand qualifies after reaching ₹10,000 crore annual sales in India.
• TS2: turnover of at least ₹1,000 crore and all “Indian Brand” tests: incorporated in India, IP and trademark held in India, Indian management control, more than 51% Indian shareholding and in-house R&D in India.

What incentives does the scheme give?

How does a firm earn the incentive?

1. Register in India and meet turnover thresholds
2. Grow sales above the base-year level each year
3. Incentive computed brand-wise on sales
4. Extra reward for Indian brands, design and R&D
5. Extra up to 1.5% for locally sourced components

Why does the Mobile Phone Manufacturing Scheme matter?

What are the challenges in the Mobile Phone Manufacturing Scheme?

• Much value still lies in imported components; domestic sourcing gets only up to 1.5% extra.
• Building a global Indian brand is hard against established competitors.
• Checking genuine Indian ownership of IP needs careful evaluation.
• High turnover thresholds favour big firms in TS1.

What should be done next on the Mobile Phone Manufacturing Scheme?

• Develop the promised non-fiscal support for Indian brands with industry.
• Link the scheme with component and semiconductor programmes.
• Track domestic value addition, not just output.
• Keep exports growing as PLI-era gains mature.

What can Prelims ask on the Mobile Phone Manufacturing Scheme?

• MPMS: ₹62,500 crore; FY 2026-27 to FY 2030-31; notified by MeitY.
• TS1 incentive 2.25% to 5%; TS2 5% plus 3% for Indian design and R&D.
• “Indian Brand”: IP and trademark in India, more than 51% Indian shareholding.
• PLI-LSEM ended 31 March 2026.

How to write about the Mobile Phone Manufacturing Scheme in Mains

Practice question (15 marks, 250 words): India has become a major mobile phone manufacturer, yet value addition remains limited. How does the Mobile Phone Manufacturing Scheme try to address this?

• Intro: 2nd largest maker; smartphones top export in 2025.
• Gap: brands, design, components.
• MPMS design: two segments, incentives, Indian Brand test, sourcing bonus.
• Expected outcomes: ₹39 lakh crore output, 60,000 jobs.
• Challenges and way forward.