The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore (Rupees Sixty-Two Thousand Five Hundred Crore Only).
Salient Features:
- To further scale up the production, deepen domestic value addition, strengthen supply chain resilience, enhance global competitiveness, the Government has launched the Mobile Phone Manufacturing Scheme (MPMS).
- MPMS scheme also aims at building Indian brands to achieve technological sovereignty, capture large economic value and create Indian patents in design and R&D.
- The scheme tenure shall be 5 Years i.e. from FY 2026-27 to FY 2030-31.
- The scheme provides incentive support on eligible sales for manufacturing of mobile phones in India at differentiated rates ranging from 2.25% to 5%. Scheme also provides additional incentive of up to 1.5% linked to domestic sourcing of key components/ sub-assemblies. For building Indian brands, an additional incentive @3% on Eligible Sales for design and R&D of the product
*China is the number one country for mobile phone manufacturing, producing the most phones globally.