India Launches Rs 62,500 Cr Scheme for Mobile Manufacturing

India has officially launched the Mobile Phone Manufacturing Scheme (MPMS), a significant initiative valued at Rs 62,500 crore, aimed at bolstering the nation’s electronics manufacturing sector. This scheme, notified by the Ministry of Electronics and Information Technology (MeitY), seeks to enhance India’s global competitiveness in mobile production.

Scheme’s Core Purpose

The Ministry of Electronics and Information Technology (MeitY) designed the MPMS to drive the next phase of growth in electronics manufacturing. Its primary goals include increasing global competitiveness by enhancing scale and deepening the mobile manufacturing supply chain through higher Domestic Value Addition (DVA).

Additionally, the scheme aims to strengthen domestic manufacturing capabilities across the country. It will also support Indian mobile phone brands in achieving technological sovereignty, capturing greater economic value, and encouraging Indian patents in design and R&D.

Key Financials and Timeline

• Scheme Value: Rs 62,500 crore
• Tenure: 5 years, from FY 2026-27 to FY 2030-31
• Expected Cumulative Production: Approximately Rs 39 lakh crore
• Direct Job Creation: Around 60,000 positions

During its five-year tenure, the MPMS is projected to significantly boost mobile phone exports. This substantial increase in production and exports is expected to contribute positively to India’s overall economic growth.

The initiative also aims to generate approximately 60,000 direct jobs, reinforcing the nation’s employment landscape. Ultimately, these efforts are designed to strengthen India’s position as a global electronics manufacturing hub.

Dual Target Segments

The Mobile Phone Manufacturing Scheme operates through two distinct target segments, each designed to address specific aspects of the mobile manufacturing ecosystem. These targeted approaches ensure comprehensive support across the sector.

• Target Segment 1 (TS1): Focuses on incentivizing the manufacturing of mobile phones.
• Target Segment 2 (TS2): Dedicated to supporting Indian mobile phone brands.

By segmenting its approach, the scheme aims to foster both general production capacity and the growth of indigenous brands. This structured support is crucial for achieving the broader objectives of enhanced manufacturing and export capabilities.