India targets homegrown phone brands with ₹62,500 crore MPMS incentive scheme
The five-year Mobile Phone Manufacturing Scheme, running FY27-FY31, links incentives to Indian design IP, production, R&D and local sourcing. Electronics Minister Ashwini Vaishnaw said India-designed phones could reach the market within 10-14 months.
What happened
Mobile Phone Manufacturing Scheme (MPMS) · India notified the Rs 62,500-crore MPMS, requiring Indian brands to own design IP and meet sales criteria. The scheme
Key facts
- Rs 62,500 crore scheme outlay
- 10-14 months for India-designed phones
- 3 potential Indian players
- 51% Indian ownership requirement for TS2
- Rs 10,000 crore FY26 turnover threshold for TS1
- Rs 1,000 crore FY26 turnover threshold for TS2
- 5-year scheme duration
- Rs 39 lakh crore projected cumulative production
- 60,000 projected direct jobs
- Rs 15 lakh crore domestic production target
- Rs 5,000 crore annual incremental-sales threshold for existing brands
- Rs 10,000 crore annual-sales threshold for new brands
- 2.75% incentive in FY27-FY28
- 2.5% incentive in FY29-FY30
- 2.25% incentive in FY31
- 5% incentive for Indian brands
- Up to 3% R&D incentive
- Up to 1.5% domestic-sourcing incentive
Why this matters
Global device brands, ODMs and component makers should assess Indian design, manufacturing and sourcing partnerships now, as MPMS shifts the market’s advantage from assembly capacity toward local IP and supply-chain integration.