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16 July 2026 NATIONAL

The Union Cabinet, chaired by PM Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore. The scheme will be implemented over 5 years, from FY27 to FY31.

The MPMS aims to scale up production, deepen domestic value addition, strengthen supply chain resilience, and enhance global competitiveness in the mobile phone manufacturing sector. The scheme offers incentive support on eligible sales for manufacturing mobile phones in India at rates ranging from 2.25% to 5%.

Additional incentives include up to 1.5% for domestic sourcing of key components or sub-assemblies, and an extra 3% for product design and Research and Development (R&D) to build Indian brands. Cumulative mobile phone production in India is expected to reach Rs 39 lakh crore during the scheme's tenure, alongside a projected increase in exports.

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