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Union Cabinet Approves Mobile Phone Manufacturing Scheme
The Union Cabinet approves the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore. The Cabinet Committee on Economic Affairs clears MPMS following the sunset of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), whose tenure ends on March 31, 2026.
Mobile Phone Manufacturing Scheme (MPMS):
| Dimension | Key Details |
|---|---|
| Approval authority | The scheme is cleared by the Cabinet Committee on Economic Affairs (CCEA). |
| Preceding scheme status | The Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) tenure ends on March 31, 2026. |
| Tenure | The scheme runs for 5 years, spanning from FY 2026-27 to FY 2030-31. |
| Nodal ministry | The scheme is governed by the Ministry of Electronics and Information Technology (MeitY). |
| Core incentive support | Provides for differentiated incentives ranging from 2.25% to 5% on eligible sales of mobile phones manufactured in India. |
| Domestic component sourcing surcharge | Provides for an additional incentive of up to 1.5% linked directly to domestic sourcing of key sub-assemblies and core components. |
| Indian IP and brands incentive | Provides for an additional incentive of 3% on eligible sales reserved for design, research, and development (R&D) of products. |
| Technological sovereignty focus | Comprises a focus to secure Indian patents, capture high-value economic segments, and strengthen domestic R&D capabilities. |