Mobile Phone Manufacturing Scheme (MPMS)

About Mobile Phone Manufacturing Scheme (MPMS)

• It has been launched to scale up domestic production, deepen component localization, and foster indigenous smartphone design and R&D. 
• Launched by: It has been launched by Ministry of Electronics and Information Technology (MeitY). 
• Aim: It aims to deepen domestic value addition, strengthen supply chains, boost exports and consolidate India’s position as a global electronics manufacturing hub.
• Duration: It is a five-year scheme, which will run from FY 2026-27 to FY 2030-31.
• Budget Outlay: Its budgetary outlay is of Rs. 62,500 crore.
• Features
  • Production-Linked Incentives: The scheme provides incentive support on eligible sales of mobile phones manufactured in India, with differentiated incentive rates ranging from 2.25% to 5%, based on the applicable eligibility criteria.
  • Incentive for Domestic Value Addition: Manufacturers can receive an additional incentive of up to 1.5% for increasing domestic sourcing of key components and sub-assemblies, thereby promoting local manufacturing ecosystems.
  • Support for Design and Innovation: To foster indigenous innovation and brand creation, the scheme offers an additional 3% incentive on eligible sales for companies undertaking product design and R&D activities in India.
• Expected Outcomes:
  • During the scheme tenure, the cumulative mobile phone production in the country is expected to reach approximately Rs. 39,00,000 crore with significant increase in exports of mobile phones.
  • The Scheme is also expected to generate around 60,000 direct jobs.