India notifies phone manufacturing incentive scheme with ₹10,000 crore turnover threshold
The Mobile Phone Manufacturing Scheme sets a ₹10,000 crore FY26 turnover threshold for registered manufacturers and ₹1,000 crore for EMS firms. Existing brands must add ₹5,000 crore in annual sales over their FY26 base to qualify, while eligible Indian brands get a one-year gestation period.
What happened
Mobile Phone Manufacturing Scheme (MPMS) · The government notified the MPMS to strengthen domestic phone production and Indian mobile brands. Manufacturers need
Key facts
- Rs 10,000 crore minimum FY26 turnover for registered mobile phone manufacturers
- Rs 5,000 crore additional annual sales required for existing brands over FY26 base
- Rs 1,000 crore minimum FY26 turnover for EMS companies
- One-year gestation period for eligible Indian mobile phone brands
Why this matters
Strategic partnerships, EMS alliances and acquisitions that add domestic capacity or accelerate ₹5,000 crore-plus sales expansion become more valuable as brands position for scheme eligibility.
What to watch
- Publication of detailed incentive rates, payout caps, export eligibility and domestic-value-addition conditions.
- List and number of registered manufacturers, especially participation by Apple suppliers, Samsung-linked vendors, Tata, Dixon and other major EMS players.
- FY26 reported India handset turnover and export shipment growth among registered companies.
- Clarification of how the ₹5,000 crore incremental-sales requirement is measured for existing brands.
- New handset assembly, component and supplier-park capex announcements.
- Consolidation, contract wins or market exits among subscale Indian handset brands and assemblers.
- Large OEMs should map FY26 turnover against the ₹10,000 crore threshold and accelerate India sales/export bookings that qualify under the scheme.
- EMS firms should pursue multi-year handset assembly contracts, capacity utilization commitments and component localization partnerships to secure the ₹1,000 crore threshold.
- Indian brands should treat the gestation year as a financing and distribution deadline, prioritizing a narrow set of high-volume models rather than broad portfolio expansion.
- Smaller manufacturers may seek consolidation, joint ventures or OEM/EMS partnerships rather than pursue standalone eligibility.
- Component suppliers should target qualified manufacturers, as incentive-linked volume growth can increase demand for domestic enclosures, chargers, batteries, camera modules and sub-assemblies.