Modi government’s mega plan of Rs 62,500 crore, no longer foreign, Indian smartphone brands will dominate the world

Electronics Manufacturing India: India’s smartphone market was being dominated by foreign companies for a long time, but now preparations have been made to change the picture. Let us tell you that the Central Government has approved the Mobile Phone Manufacturing Scheme to give new heights to the mobile manufacturing sector of the country. After which a big budget of Rs 62,500 crore has been fixed under the scheme, the objective of which is to promote mobile manufacturing in India and make domestic brands competitive at the global level.

Along with this, the government has also approved an investment of Rs 1.26 lakh crore under the Semicon 2 scheme to strengthen the semiconductor ecosystem. It is believed that together these two schemes will be seen playing an important role in making India a global electronics hub.

Now MPMS instead of PLI

It is being seen that the new MPMS Scheme will replace the PLI-LSEM (Production Linked Incentive) Scheme which ended on 31 March 2026. The government will use this fund in a phased manner in the next five years. Under this scheme, mobile manufacturing companies in India will get incentives ranging from 2.25% to 5% on sales. If companies purchase major mobile parts and sub-assemblies in the country, they will be given an additional incentive of 1.5%. Indian brands will also get 3% additional incentive to increase investment on design and Research & Development (R&D).

Employment will increase and exports will also get a boost.

The government’s aim with this scheme is to increase mobile manufacturing in the country to about Rs 39 lakh crore. Along with this, mobile exports are also expected to increase. The government says that the MPMS scheme will create 60,000 direct employment opportunities. This will provide new jobs to the youth as well as increase investment in the electronics sector.

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Make in India will get new momentum

It was seen that India’s electronics manufacturing sector has grown rapidly in the last decade. At the same time, after the financial year 2014-15, there has been an increase of about 7 times in electronic production and more than 11 times increase in electronic exports. In such a situation, today more than 100 mobile manufacturers, component suppliers and startups are active in India. Companies like Foxconn, Tata Electronics and Dixon Technologies are manufacturing smartphones in India for global brands. At the same time, companies like Samsung, Oppo and Vivo also have manufacturing units in India.

Along with this, the aim of the new strategy of the government is not only to attract foreign companies but also to give global recognition to Indian brands. If the plan progresses as per the target, then in the coming years India can become one of the largest smartphone manufacturing centers in the world.