Govt launches 62,500 Cr ‘Mobile Phone Manufacturing Scheme’, aims strong Indian brand by 2027

The Ministry of Electronics and Information Technology has notified the Rs 62,500 crore Mobile Phone Manufacturing Scheme to expand domestic production, deepen local value addition, and support Indian-owned mobile phone brands. The notification comes more than a month after the Union Cabinet approved the scheme on July 15. The five-year programme will run from FY27 through FY31 and succeeds the PLI scheme for large-scale electronics manufacturing, whose tenure ended on March 31, 2026. Under MPMS, the government will offer differentiated incentives ranging from 2.25 per cent to 5 per cent to eligible mobile phone manufacturers and electronics manufacturing services providers. Indian brands will be eligible for an incentive of 5 per cent, along with an additional 3 per cent for Indian design and R&D. They will also receive non-fiscal support under the scheme.