New Delhi, August 24, 2026: The Government of India has notified a ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS), marking a major push to strengthen domestic electronics manufacturing, increase local value addition and create globally competitive Indian-owned smartphone brands.
The five-year scheme will run from FY 2026-27 to FY 2030-31 and is designed to move India beyond large-scale assembly towards greater domestic manufacturing, component production, design, research and development.
Push for an Indian Smartphone Brand
Union Electronics and IT Minister Ashwini Vaishnaw said India could see its first strong, genuinely Indian-owned mobile phone brand by mid-2027.
The government is placing particular emphasis on Indian ownership of the brand, intellectual property and product design. According to the scheme framework, Indian brands can receive a 5% incentive on eligible sales, with an additional 3% incentive linked to domestic design and R&D.
The government has also indicated that several Indian companies are in discussions with the Ministry of Electronics and Information Technology (MeitY) regarding participation in the Indian-brand segment.
₹39 Lakh Crore Production Target
The MPMS aims to generate cumulative mobile-phone production of approximately ₹39 lakh crore during its five-year tenure. Mobile-phone exports are targeted at around ₹15 lakh crore, roughly double the value achieved under the previous incentive programme.
The scheme offers differentiated incentives ranging from 2.25% to 5% for eligible manufacturers and electronics manufacturing services providers. Additional incentives of up to 1.5% are linked to domestic sourcing of key components and sub-assemblies.
Focus Shifts From Assembly to Value Creation
A key objective of the new policy is to increase the amount of economic value retained in India. The government wants companies to develop stronger domestic capabilities in components, engineering, product design, intellectual property and R&D.
The initiative is also expected to generate approximately 60,000 direct jobs, while strengthening India’s position in global electronics supply chains.
The scheme replaces the earlier Production-Linked Incentive programme for large-scale electronics manufacturing, whose tenure ended on March 31, 2026.
India Eyes Global Electronics Leadership
The announcement comes as India seeks to expand its role as an alternative manufacturing base in the global electronics industry. The government expects the new incentives to attract further investment, encourage domestic intellectual-property creation and help Indian companies compete internationally.
If successfully implemented, the MPMS could mark a significant shift in India’s smartphone industry—from being primarily a major manufacturing and assembly hub to becoming a home for Indian-owned brands, technology and product innovation.
With the government targeting the emergence of a strong Indian mobile brand by mid-2027, the next year could prove crucial for the country’s ambitions to build a globally competitive smartphone ecosystem.
