Industry Odisha Bureau, Aug 25: The Union Cabinet-approved Mobile Phone Manufacturing Scheme (MPMS) reportedly launched by the Government of India in July this year with a budgetary outlay of Rs 62,500 crore aims not only to further scale up the production and deepen value addition, but also to build homegrown smartphone brands.
Accroding to the press note by the Press Information Bureau (PIB) of India released on July 15, 2026, the salien features of the Union Cabinet-approved Rs 62,500 crore MPMS is: “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 Research and Development (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.”
On the expected outcomes, the PIB press note has also stated, “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 during the scheme’s tenure. The Scheme is also expected to generate around 60,000 direct jobs thereby contributing to economic growth, employment generation and strengthening India’s position in global electronics manufacturing hub.”
The PIB press note has further stated, “Electronics manufacturing sector has also emerged as a major employer, especially for young men and women from far flung villages, with a few plant employing more than 5,000 employees at a single location. Mobile phone manufacturing has been the key driver of this growth and has emerged as the anchor of India’s electronics manufacturing ecosystem. India is now the world’s second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in India being manufactured domestically.”
The PIB press note has also underlined, “Smartphones have emerged as the single largest exported product category from India in 2025, surpassing traditional leading export items such as diesel fuel and cut diamonds. Mobile phones now constitute a major share of India’s electronics production and exports and are playing a critical role in strengthening India’s position in global value chains.”
Nevetheless, a million dollar question lurks among the analysts and exports if India could ever carve a niche globally for its homegrown brands. The Union Cabinet-approved MPMS repottedly states that “an Indian brand should be a company registered in India, have atleast 51% ownership with Indian citizens, hold all patents and trademarks within India’s borders, have functioning R&D and design teams in India holding key management control.”
Citing certain instances in this context, analysts and experts have reportedly contended that, “Noida-headquartered Indian brand ‘Lava’ still exists and continues to sell a slim line of smartphones of its own, though key concerns remain about domestic patents for design—achieved through R&D. Similarly, ‘Micromax’, ‘Karbonn’ and ‘Xolo’, which combined with ‘Lava’ had a market share of over 40% in mid-2013, but have all faded from smartphones.”
Notably, “India is reportedly one of the world’s top destinations for smartphone assembly after China, and alongside Vietnam, Thailand and Malaysia.”
