New Delhi, 15 July (H.S.):

The Central Government on Wednesday approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 625 billion to strengthen domestic mobile phone manufacturing, local sourcing, and research and development.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the scheme for a five-year period from 2026-27 to 2030-31.

Announcing the Cabinet decisions, Union Information and Broadcasting Minister Ashwini Vaishnaw said the scheme will provide production-linked incentives ranging from 2.25 per cent to 5 per cent for mobile phone manufacturing in India. In addition, manufacturers will receive an incentive of up to 1.5 per cent for domestic sourcing of components and materials. Companies investing in product design and research to build Indian brands will also be eligible for an additional 3 per cent incentive.

Vaishnaw said mobile phone production in the country is expected to reach Rs 39 lakh crore during the scheme period. The initiative is also projected to generate nearly 60,000 direct jobs while contributing significantly to economic growth.

According to the government, the scheme aims to achieve technological sovereignty, create greater economic value, and promote the development of Indian brands through indigenous design, research and development, and the creation of Indian-owned intellectual property and patents.

The government noted that smartphones emerged as India's largest export product in 2025, surpassing traditional leading export commodities such as diesel fuel and cut diamonds. India is now the world's second-largest manufacturer of mobile phones by volume, while 99.2 per cent of the mobile phones used in the country are domestically manufactured.

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Hindusthan Samachar / Jun Sarkar