Cabinet: Mobile phone manufacturing scheme approved, sourcing and research along with manufacturing will be encouraged.

New Delhi. The Central Government has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budget outlay of Rs 625 billion. The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the scheme for a period of 5 years (from the year 2026-27 to 2030-31).

Giving information about the decisions of the Union Cabinet, Information and Broadcasting Minister Ashwani Vaishnav said that under the scheme, incentives will be given on mobile phone manufacturing in the country at different rates ranging from 2.25 percent to 5 percent. There will also be an additional incentive of up to 1.5 percent related to domestic sourcing. At the same time, 3 percent additional incentive will be given on design and research to create an Indian brand.

Vaishnav said mobile phone production is expected to reach Rs 39 lakh crore during the plan period. Also, this scheme will create about 60 thousand direct employment and will also contribute to economic development.

According to the government, the scheme also aims to build Indian brands to achieve technological sovereignty, achieve greater economic value and create Indian patents in design and R&D.

It is noteworthy that smartphones were the largest product exported from India in 2025. It has overtaken traditional major export commodities like diesel fuel and cut diamonds. India is now the world’s second largest mobile phone manufacturer by volume and 99.2 percent of mobile phones used in India are indigenously manufactured.