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Mobile Phone Manufacturing Scheme (MPMS)

1 min read Source: BS
RBI Grade BNABARD ESISEBI
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Context: The Ministry of Electronics and Information Technology (MeitY) notified the Mobile Phone Manufacturing Scheme (MPMS), aimed at incentivising domestic assembly of smartphones and greater local value addition. The ₹62,500 crore scheme was approved by the Union Cabinet on 15 July and continues the earlier PLI Scheme for Large Scale Electronics Manufacturing, which ran from 2020 to FY26.

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What is Mobile Phone Manufacturing Scheme (MPMS)?

The Mobile Phone Manufacturing Scheme (MPMS) is a ₹62,500 crore, five-year government scheme aimed at making India a stronger global hub for mobile phone manufacturing.

  • Scheme outlay: ₹62,500 crore
  • Duration: through 2030-31
  • India’s position: second largest phone manufacturer in the world
  • Main aim: Increase mobile phone production and domestic value addition in India.
  • Indian brands: The scheme also provides special support to Indian-owned mobile phone brands, including incentives for Indian design and R&D.

MPMS is designed to encourage companies to make more mobile phones

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Mobile Phone Manufacturing Scheme (MPMS)

Source: PIB

Context

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with an outlay of ₹62,500 crore to strengthen India’s mobile manufacturing ecosystem and promote indigenous brands.

About MPMS

  • Launched by: Government of India
  • Approved by: Union Cabinet
  • Outlay: ₹62,500 crore
  • Duration: FY 2026-27 to FY 2030-31 (5 years)
Objectives
  • Increase mobile phone manufacturing in India.
  • Promote domestic value addition.
  • Encourage local sourcing of components.
  • Develop Indian mobile brands.
  • Boost research, design, and innovation.
  • Reduce import dependence and strengthen supply chains.
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