MeitY Notifies Mobile Phone Manufacturing Scheme

The Ministry of Electronics and Information Technology (MeitY) notifies the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore. The notification specifies a 5-year duration and segment-wise incentives for mobile phone manufacturing and Indian mobile phone brands.

Mobile Phone Manufacturing Scheme:

Dimension	Key Details
Duration	The scheme applies for 5 years, from FY 2026-27 to FY 2030-31.
Objectives	The scheme provides for scaling up mobile manufacturing, deepening domestic value addition, and strengthening supply chains.
Domestic manufacturing share	Domestic manufacturing comprises over 99.2% of mobile phones used in India.
Target segments	The scheme comprises 2 target segments: TS1 (mobile phone manufacturing) and TS2 (Indian mobile phone brands).
Incentives (TS1 and TS2)	TS1 provides for an incentive of 2.25%-5%, and TS2 provides for an incentive of 5% plus an additional 3% for Indian design and R&D.
Additional incentive	The scheme provides for an additional incentive of up to 1.5% for domestic sourcing of key components and sub-assemblies.
Non-fiscal support	The scheme provides for non-fiscal support to Indian brands.
Indian brand conditions (TS2)	TS2 applies to an Indian brand that comprises these conditions: registration/incorporation in India; more than 51% shareholding with Indian citizens; management control by Indian citizens; ownership of IP and trademarks in India; in-house R&D and design capabilities in India.
Eligibility thresholds	Eligibility mandates minimum turnover of ₹10,000 crore in FY 2025-26 for TS1, and ₹1,000 crore in FY 2025-26 for TS2.
Eligible applicants	The scheme authorises EMS providers registered in India to apply.
Gestation provision	The scheme provides for a one-year gestation period for TS2 applicants.
Domestic sourcing condition	The scheme mandates that localised components account for at least 25% of total mobile phone units manufactured by the applicant in a financial year.
Expected outcomes	Expected outcomes comprise cumulative production of approximately ₹39 lakh crore, around 60,000 direct jobs, and greater exports and domestic value addition.