Cabinet approves ₹ 62,500 crore mobile manufacturing scheme to promote manufacturing, exports | Today’s news
The Union Cabinet on Wednesday approved a ₹The $62.5 trillion Mobile Phone Manufacturing Program (MPMS) aimed at increasing domestic mobile phone manufacturing, deepening local value addition and strengthening India’s position as a global electronics manufacturing hub.
The Cabinet, chaired by Prime Minister Narendra Modi, approved the scheme with a five-year tenure from FY2026-27 to FY2030-31.
The scheme follows the Production Incentive Program for Large Electronics Manufacturing (PLI-LSEM), which ended on 31 March 2026.
Incentives for production, local resources
Under this program, mobile phone manufacturing companies in India will receive manufacturing incentives ranging from 2.25% to 5% of eligible sales.
Manufacturers can also claim an additional incentive of up to 1.5% for sourcing major components and subassemblies domestically, which encourages deeper localization of the supply chain.
To support Indian smartphone brands, the government will provide an additional 3% incentive on eligible sales associated with product design and research and development (R&D).
According to the government, the scheme aims to increase production, increase domestic value addition, strengthen supply chain resilience, strengthen global competitiveness and build Indian brands capable of developing indigenous technologies and patents.
₹Production target of 39 million million crowns
The center expects this system to generate a cumulative production of mobile phones worth approx ₹39 lakh crore during his five-year tenure.
It is also expected to create around 60,000 direct jobs, contributing to job creation and economic growth.
“Smartphones will become one of India’s largest export product categories by 2025, surpassing traditional major export items such as diesel and cut diamonds,” the government said in a statement.
She added that mobile phones now account for a significant share of India’s electronics manufacturing and exports and play a key role in the country’s integration into global value chains.
Growth of mobile manufacturing in India
The government said India’s electronics manufacturing sector has expanded rapidly under the Make in India initiative, with electronics manufacturing growing seven-fold and exports increasing eleven-fold since FY2014-15.
India is now the second largest producer of mobile phones in the world by volume, with 99.2% of the mobile phones used in the country being manufactured domestically.
According to the Ministry of Electronics and Information Technology (MeitY), the production of mobile phones increased from ₹18,900 crore in FY 2014-15 ₹6.27 lakh crore in FY 2025-26, while exports surged ₹1,566 million crowns ₹2.60 lakh crore for the same period.
The government also noted that mobile phones have risen from India’s 153rd largest export item in fiscal year 2014-15 to the country’s largest export product in fiscal year 2025-26, underscoring India’s growing competitiveness in global electronics manufacturing.
