The Ministry of Electronics and IT has notified the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to boost domestic assembly and local value addition. Indian-owned brands will receive significant preferential treatment to compete globally.

  • ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) officially notified.
  • Indian brands to receive a flat 5% incentive and 3% R&D support.
  • Target: ₹39 lakh crore cumulative production and ₹15 lakh crore exports by 2030-31.
  • Expected creation of 60,000 direct jobs.

New Delhi: The Ministry of Electronics and Information Technology (MeitY) on Friday officially notified the Mobile Phone Manufacturing Scheme (MPMS). Aimed at incentivizing domestic smartphone assembly and increasing local value addition, the ₹62,500 crore scheme follows the success of the previous PLI Scheme for Large Scale Electronics Manufacturing (LSEM) that operated from 2020 to the last financial year.

Incentive Structure and Operational Details

Under the new guidelines, phone manufacturers will receive a base incentive for assembly, tapering from 2.75% to 2.25% over five years. Additionally, a 1.5% incentive will be provided to firms that source at least 25% of their components domestically. This is designed to deepen the local supply chain and reduce reliance on imports.

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Preferential Treatment for Indian Brands

In a strategic move to foster homegrown champions, the government has carved out specific benefits for Indian brands. To qualify, brands must be majority-owned by Indian citizens, incorporated in India, and hold their intellectual property (IP) and trademarks locally. These brands will enjoy a flat 5% incentive throughout the scheme's tenure and a 3% incentive for domestic design and R&D. Furthermore, the minimum turnover requirement for Indian brands is set at a much lower ₹1,000 crore, compared to ₹10,000 crore for global players.

Why This Matters

BozokMedia analysis shows that by lowering the entry barrier for domestic players through lower turnover requirements and higher incentives, the government is actively attempting to build an indigenous ecosystem that can eventually challenge global giants like Apple and Samsung on their own terms.

IT Secretary S. Krishnan stated, 'Our goal of doubling overall domestic value addition from 18-23% to 35-40% will be achieved in the coming days.'

IT Secretary S. Krishnan highlighted that the scheme is expected to create 60,000 direct jobs. He emphasized that the expertise gained in mobile manufacturing will act as a catalyst for other high-tech sectors, including drones, medical devices, and gaming consoles, fostering a broader technological ecosystem.

Did You Know?: India has transitioned from importing 70-75% of its phones in 2014-15 to becoming one of the world's largest exporters of finished handsets.

Frequently Asked Questions

1. What are the requirements for a brand to be considered 'Indian'?
It must be majority-owned by Indian citizens, incorporated in India, and hold its IP and trademarks locally.

2. How much cumulative production is the government targeting?
The government aims for a cumulative production value of ₹39 lakh crore by the end of the scheme in 2030-31.