The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a budget outlay of ₹62,500 crore.
The scheme will be implemented for five years (2026–27 to 2030–31) to boost mobile phone manufacturing and domestic value addition.
It provides production incentives of 5%–25%, an additional 1.5% incentive for domestic component sourcing, and 3% for design, engineering and Research and Development (R&D).
It promotes indigenous innovation, strengthens the electronics supply chain, and supports Atmanirbhar Bharat and Make in India.
MPMS succeeds the Production-Linked Incentive for Large-Scale Electronics Manufacturing (PLI-LSEM) scheme to further expand India's global smartphone manufacturing.