India unveils ₹62,500 crore mobile manufacturing scheme targeting ₹39 lakh crore output
The Mobile Phone Manufacturing Scheme will run from FY27 to FY31, targeting ₹15 lakh crore in exports and 60,000 direct jobs. It offers incentives for large-scale production, Indian design and R&D, domestic sourcing and locally owned smartphone brands.
What happened
Mobile Phone Manufacturing Scheme (MPMS) · India notified a Rs 62,500-crore mobile manufacturing scheme to deepen local components, Indian IP and domestic
Key facts
- Rs 62,500 crore budgetary outlay
- Rs 39 lakh crore mobile-phone production target
- Rs 15 lakh crore export target
- 60,000 estimated direct jobs
- Five financial years: 2026-27 to 2030-31
- TS1 incentives: 2.75% in 2027-28, 2.5% in 2029-30, 2.25% in 2031
- TS2 incentive: 5% of eligible sales plus 3% for Indian design and R&D
- Up to 1.5% additional domestic-sourcing incentive
- TS2 eligibility: over 51% Indian shareholding and Rs 1,000 crore FY2025-26 turnover
- TS1 eligibility: Rs 10,000 crore FY2025-26 turnover
Why this matters
Electronics companies should pursue partnerships, supplier investments or acquisitions in Indian components, R&D and local-brand platforms to qualify for incentives and secure a strategic foothold.
What to watch
- Publication of scheme rules, including incentive rates, minimum investment, domestic sourcing definitions and treatment of foreign-owned OEMs.
- Initial applicant list and committed capex from Apple suppliers, Samsung, Chinese OEMs, Indian brands and EMS firms.
- Evidence that components—not only handset assembly—are being localized, particularly PCBs, batteries, camera modules, displays and semiconductor packaging.
- Export order growth versus domestic shipment growth; the ₹15 lakh crore export target requires sustained overseas demand and competitive logistics.
- Market-share movement for Indian-owned brands in sub-₹15,000 and mid-range handsets.
- Trade-policy changes affecting imported components, Chinese investment approvals, tariffs, certification rules and free-trade access.
- Retail price trends and launch availability for locally produced models relative to imported alternatives.
- Global smartphone OEMs and contract manufacturers will seek early clarity on incentive eligibility, domestic-value-addition thresholds and export commitments before expanding India capacity.
- Electronics retailers will increase shelf space, financing offers and private-label accessory partnerships around India-made devices and domestically branded smartphones.
- Component suppliers in batteries, camera modules, chargers, enclosures, displays, PCB assembly and testing will evaluate India joint ventures or local plants to qualify OEMs for sourcing incentives.
- Indian smartphone brands will pursue design, OS localization, after-sales networks and carrier/retail partnerships rather than compete only on entry-level pricing.
- Large retailers and e-commerce marketplaces may use 'Made in India' merchandising and exclusive launches, especially if compliant products receive cost or supply advantages.