Cabinet Approves Mobile Phone Manufacturing Scheme with ₹62,500 Crore Outlay

On July 15, 2026, The Union Cabinet, led by Prime Minister Narendra Modi, approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary allocation of ₹62,500 crore, as per the press release on PIB.  

This initiative aims to enhance mobile phone production, strengthen domestic value addition, and boost exports. 

Scheme Details and Objectives 

The MPMS is designed to scale up production, deepen domestic value addition, and enhance global competitiveness.  

The scheme offers incentive support on eligible sales for mobile phone manufacturing in India, with rates ranging from 2.25% to 5%.  

An additional incentive of up to 1.5% is linked to domestic sourcing of key components and sub-assemblies.  

For building Indian brands, there is an extra incentive of 3% on eligible sales for design and R&D. 

Expected Outcomes and Impact 

During the scheme's 5-year tenure, from FY 2026-27 to FY 2030-31, cumulative mobile phone production in India is projected to reach approximately ₹39,00,000 crore.  

The scheme is also expected to generate around 60,000 direct jobs, contributing to economic growth and employment generation. 

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Context and Background 

Under the Prime Minister's Make in India vision, electronics manufacturing has grown 7 times, with exports increasing 11 times since FY 2014-15.  

Mobile phone manufacturing has been a key driver of this growth, making India the world's second-largest mobile phone manufacturer by volume.  

In 2025, smartphones became the largest exported product category from India, surpassing traditional leading export items. 

Conclusion 

The Mobile Phone Manufacturing Scheme, with a budget of ₹62,500 crore, aims to increase mobile phone production to ₹39,00,000 crore and create 60,000 jobs over 5 years. It supports domestic value addition and strengthens India's position in global electronics manufacturing. 

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