India notifies ₹62,500 crore mobile manufacturing incentive scheme through FY31
The five-year programme offers 2.25%-5% incentives, with additional support for domestic sourcing, design and R&D. It could accelerate India-made handset supply, strengthen component localisation and support expansion by Indian brands and global players including Apple and Google.
What happened
Government of India (MeitY) · India notified a Rs62,500-crore mobile manufacturing incentive scheme through FY31, offering higher support for domestic sourcing,
Key facts
- Rs62,500 crore scheme outlay
- Five-year programme
- Incentives of 2.25%-5%
- Up to 1.5% additional domestic-sourcing incentive
- Additional 3% design and R&D incentive
- Rs5,000 crore annual incremental-sales threshold from FY27
- Rs25,000 crore incremental-sales threshold in FY31
- Rs10,000 crore annual India sales eligibility threshold for new brands
- Domestic value addition rose from 15% to 23%
- 99.2% of phones used in India manufactured domestically
- Mobile exports grew 166 times between 2014 and 2025
- 59% export CAGR
- 61% of electronics exports in FY26
Why this matters
Corporate development teams should assess partnerships, acquisitions and supplier alliances in Indian handset components, design and contract manufacturing as higher incentives favor locally integrated ecosystems.