In a strategic move to solidify its position in the global electronics landscape, the Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS). Announced by the Ministry of Electronics and Information Technology (MeitY), the scheme carries a substantial budgetary outlay of ₹62,500 crore. This follows the conclusion of the previous Production Linked Incentive (PLI) scheme for Large Scale Electronics Manufacturing, signaling the government's intent to maintain its aggressive momentum in the smartphone sector.

Aiming for Technological Sovereignty

While previous initiatives successfully attracted global giants like Apple and Samsung, the MPMS is uniquely designed to empower homegrown Indian brands. The government's vision extends beyond mere assembly; it seeks to foster 'technological sovereignty' by encouraging local design and research. To this end, Indian brands will be eligible for an additional 3% incentive on eligible sales specifically for design and R&D conducted within India.

A Multi-Tiered Incentive Structure

The scheme introduces a sophisticated incentive model to deepen value addition. Manufacturers will receive incentives ranging from 2.25% to 5% based on eligible domestic sales. Furthermore, to strengthen the local ecosystem, an additional incentive of up to 1.5% will be provided to companies that source a higher percentage of components domestically. This tiered approach is designed to build a robust, self-reliant supply chain that can compete on a global scale.

Economic Projections and Job Creation

The economic implications of this scheme are profound. MeitY projects that the value of handset manufacturing in India could soar to ₹39,00,000 crore during the scheme's tenure. Beyond the macro-economic figures, the MPMS is expected to be a significant driver of employment, directly creating an estimated 60,000 jobs. By scaling production and boosting exports, India is positioning itself to move from being a major consumer market to a dominant global manufacturing powerhouse.