Industry Odisha Bureau, Aug 17: In a bid to encourage local brand building and innovation, the Government of India (GoI) has reportedly decided to offer a three per cent (3%) brand incentive to the Indian mobile manufacturers under the Mobile Phone Manufacturing Scheme (MPMS).
As per media reports, “The 3% incentive under the Mobile Phone Manufacturing Scheme (MPMS) has duly been approved by the Union Cabinet on July 15 this year, and it is part of the GoI’s newly-announced Rs 62,500 crore MPMS that offers an extra 3% on eligible sales for mobile phones designed, engineered, and Research & Development (R&D)-led in India. The 3% is not a general sales subsidy, rather it is tied to indigenous design and innovation, aiming to move beyond low-value assembly toward building Indian brands with patents and proprietary technology.”
On the purpose and goals of the ambitious MPMS, media reports, citing the Ministry of Electronics and IT (MEITy) sources, further stated that, “The 3% brand incentive is intended to push companies into R&D and product development rather than remaining in low‑value assembly, to support ‘Made in India’ brands by rewarding domestic design and engineering work, to create Indian patents and reduce dependence on foreign technology, and deepen domestic value addition in the electronics supply chain.”
On the scheme details, media reports, citing the Ministry of Electronics and IT (MEITy) sources, also stated that, “While the tenure of Rs 62,500 crore MPMS is of five years, i.e. from fiscal year 2026-27 (FY27) to fiscal year 2030-31 (FY31), its expected outcomes are higher exports with a cumulative mobile phone production worth Rs 39 lakh crore and 60,000 direct jobs.”
