Mobile Phone Manufacturing Scheme (MPMS)

Why in News?

Recently MeitY has notified the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore.

• Nodal ministry – Ministry of Electronics and Information Technology (MeitY)
• Duration – 5 years (FY 2026–27 to FY 2030–31).
• Objective – Scale up mobile manufacturing, deepen domestic value addition and strengthen supply chains.

India World’s 2^nd-largest mobile phone manufacturer by volume. Over 99.2% of mobile phones used in India are manufactured domestically.

• Two Target Segments

• Additional incentive – Up to 1.5% for domestic sourcing of key components and sub-assemblies.
• Non-fiscal support will also be provided to Indian brands.
• Indian Brand – Important Conditions – For TS2, an Indian brand must have:
  • Registration/incorporation in India.
  • More than 51% shareholding with Indian citizens.
  • Management control by Indian citizens.
  • Ownership of IP and trademarks in India.
  • In-house R&D and design capabilities in India.
• Eligibility
  • TS1 – Minimum turnover of ₹10,000 crore in FY 2025–26.
  • TS2 – Minimum turnover of ₹1,000 crore in FY 2025–26.
  • EMS providers registered in India can also apply.
  • TS2 applicants may receive a one-year gestation period.

• Domestic sourcing provisions
  • Additional incentive of up to 1.5% given.
  • Localised components must account for at least 25% of total mobile phone units manufactured by the applicant in a financial year.
• It helps localisation, self-reliance and stronger domestic component supply chains.

• Expected Outcomes
  • Cumulative production – approximately ₹39 lakh crore.
  • Around 60,000 direct jobs expected.
  • Greater exports and domestic value addition.
• Significance – It help strengthening of Indian brands, indigenous IP and product design.

Reference

DD India| Mobile Phone Manufacturing Scheme (MPMS)