Three firms explore Indian smartphone-brand revival under ₹62,500 crore incentive scheme
MeitY says three homegrown companies are in talks to use its mobile manufacturing programme, which links incentives to Indian control, sales growth, R&D and local sourcing. A new domestic smartphone brand could launch next year as Chinese brands retain nearly 68% of India sales.
What happened
MeitY Mobile Phone Manufacturing Scheme · MeitY says three homegrown firms are considering its ₹62,500-crore smartphone manufacturing scheme, with a new Indian
Key facts
- ₹62,500 crore scheme outlay
- 3 homegrown companies in talks
- 5% cash incentive on net annual sales
- additional 3% R&D incentive
- 51% Indian ownership and management-control requirement
- China-based brands held nearly 68% of India phone sales as of June
- annual smartphone shipments projected at around 130 million
- ₹100 billion domestic electronics and appliances market
- ₹5,000 crore minimum annual turnover
- 2.75% incentive on base sales
- 5% incentive on sales above base revenue
- additional 1.5% for local component sourcing
- 25% local sourcing volume across five component types
Why this matters
Consumer-electronics companies should assess partnerships, acquisitions and component-supply alliances with emerging Indian handset brands before incentive-linked localisation reshapes the competitive landscape.