Mobile Phone Manufacturing Scheme (MPMS)

Why in News?

The Union Cabinet has recently approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore.

• The tenure of the highly successful Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM) ended on March 31, 2026.
• Following the sunset of PLI-LSEM, the Cabinet Committee on Economic Affairs (CCEA) cleared the Mobile Phone Manufacturing Scheme (MPMS).

Salient Features of the MPMS

• Tenure - The scheme will run for a duration of 5 Years, spanning from FY 2026-27 to FY 2030-31.
• Nodal Ministry - Ministry of Electronics and Information Technology (MeitY).
• Core Incentive Support- Differentiated incentives ranging from 2.25% to 5% will be provided on eligible sales of mobile phones manufactured in India.
• Domestic Component Sourcing Surcharge - An additional incentive of up to 1.5% is linked directly to the domestic sourcing of key sub-assemblies and core components.
• Promoting Indian IP & Brands - An additional incentive of 3% on eligible sales is reserved specifically for the design, research, and development (R&D) of products.
• Technological Sovereignty- A prime focus of MPMS is to secure Indian patents, capture high-value economic segments, and strengthen domestic R&D capabilities.

Reference

PIB | Mobile Phone Manufacturing Scheme (MPMS)