Government notifies Rs 62,500 crore scheme to expand mobile phone manufacturing
The Mobile Phone Manufacturing Scheme offers incentives of 2.25 to 5 percent plus additional support for Indian brands and domestic component sourcing, with a target of roughly 60,000 direct jobs and cumulative production of Rs 39 lakh crore over five years.
New Delhi1 min read
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The Ministry of Electronics and Information Technology has notified the Mobile Phone Manufacturing Scheme with a budgetary outlay of Rs 62,500 crore.
The five-year programme runs from FY 2026-27 to FY 2030-31 and succeeds the earlier production-linked incentive scheme for large-scale electronics manufacturing. It targets two segments: general mobile phone manufacturing and support for Indian-owned brands.
Incentives range from 2.25 percent to 5 percent for manufacturers. Indian brands receive a base 5 percent incentive plus an additional 3 percent for Indian design and research and development. An extra incentive of up to 1.5 percent is available for domestic sourcing of key components and sub-assemblies, provided localisation covers at least 25 percent of units in a financial year.
Eligibility for the manufacturing segment requires Indian registration and a minimum turnover of Rs 10,000 crore in FY 2026. Existing brands must generate incremental annual sales of at least Rs 5,000 crore above their FY 2026 base. New brands become eligible after reaching Rs 10,000 crore in annual sales.
Officials project cumulative production of approximately Rs 39 lakh crore and around 60,000 direct jobs. Electronics and IT Minister Ashwini Vaishnaw said the scheme should help produce the first strong indigenous mobile brand by mid-2027.
The measures aim to raise domestic value addition, expand the supply chain and improve India's position in global mobile manufacturing.
