India opens ₹62,500 crore mobile manufacturing scheme with FY26 turnover thresholds
The Mobile Phone Manufacturing Scheme takes effect April 1, 2026, offering incentives through FY31. Phone makers need ₹10,000 crore FY26 turnover to qualify, while eligible Indian-owned EMS firms need ₹1,000 crore; higher rewards are available for domestic sourcing.
What happened
Government of India · India opened the Rs 62,500-crore MPMS, offering production-linked incentives for domestic mobile manufacturing and Indian phone brands.
Key facts
- Rs 62,500 crore scheme outlay
- Rs 10,000 crore FY26 turnover eligibility threshold
- Rs 1,000 crore FY26 turnover threshold for EMS firms with 51% Indian ownership
- Rs 5,000 crore annual incremental sales threshold
- 2.75% incentive rate in FY27-FY28
- 2.5% incentive rate in FY29-FY30
- 2.25% incentive rate in FY31
- Up to 1.5% additional domestic-sourcing incentive
- Five-year scheme tenure
Why this matters
Strategic buyers should prioritize partnerships, supply agreements or acquisitions involving Indian-owned EMS and component suppliers that can help handset makers meet eligibility and domestic-sourcing requirements.