The Union Government has notified a ₹62,500-crore Mobile Phone Manufacturing Scheme aimed at increasing the global competitiveness of India’s mobile industry, deepening domestic value addition and supporting Indian-owned brands, design and intellectual property.
The five-year scheme will operate from the 2026-27 financial year to 2030-31. It follows the conclusion of the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing on March 31, 2026, and is intended to sustain the expansion of mobile phone production and exports while increasing the domestic share of the supply chain.
The new framework has two target segments. The first will incentivise mobile phone manufacturing, while the second will support Indian mobile phone brands. Under the manufacturing segment, differentiated incentives will range from 2.25 per cent to 5 per cent. The Indian-brand segment provides a 5 per cent incentive, along with an additional 3 per cent for Indian design and research and development.
An additional incentive of up to 1.5 per cent will be available for domestic sourcing of specified key components and sub-assemblies. To qualify for this component, the locally sourced items must be used in at least 25 per cent of the total mobile phone units manufactured during a financial year.
Applicants may include mobile phone manufacturers and electronics manufacturing service providers registered in India. Sales and incentives will be calculated on a brand-wise basis. The scheme also provides for non-fiscal support for Indian brands, with details to be developed in consultation with industry.
Eligibility conditions differ between the two segments. Applicants under the first segment must have a minimum turnover of ₹10,000 crore in 2025-26. Existing brands must subsequently meet an annual threshold of ₹5,000 crore over their 2025-26 sales. A new brand becomes eligible after reaching annual sales of ₹10,000 crore in India and must then satisfy the annual threshold requirement.
For the Indian-brand segment, applicants must have a minimum turnover of ₹1,000 crore in 2025-26 and meet ownership and capability conditions. The entity must be registered or incorporated in India, its intellectual property and trademark must be held in India, management control must rest with Indian citizens, Indian citizens must hold more than 51 per cent of its shares, and it must maintain in-house research, development and design capabilities in the country.
The government expects cumulative mobile phone production of approximately ₹39 lakh crore during the scheme’s tenure, along with higher exports and around 60,000 direct jobs. Electronics and Information Technology Minister Ashwini Vaishnaw said the framework was intended to give greater impetus to Indian-owned brands, intellectual property and design.
Mobile phones have become a major part of India’s electronics manufacturing and export profile. Official figures accompanying the notification state that India is the world’s second-largest mobile phone manufacturer by volume and that 99.2 per cent of phones used in the country are made domestically. Smartphones became India’s largest exported product category in 2025.
The scheme’s impact will depend on the quality of investment it attracts, the extent of component localisation and the ability of Indian brands to build competitive products and intellectual property. The next stage will involve applications, eligibility assessments and the detailed administration of incentives under the notified framework.
