Centre Notifies ₹62,500 Crore Mobile Phone Manufacturing Scheme

The Ministry of Electronics and Information Technology notified the ₹62,500 crore Mobile Phone Manufacturing Scheme on 21 August 2026. The scheme will run for five years from FY 2026-27 to FY 2030-31 and will replace the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing.

Scheme Framework

The Mobile Phone Manufacturing Scheme is a central sector incentive scheme for mobile phone production in India. The Union Cabinet approved the scheme on 15 July 2026 under the chairmanship of Prime Minister Narendra Modi. The scheme has an outlay of ₹62,500 crore.

Incentive Structure

The scheme has two target segments. Target Segment 1 covers global and large-scale mobile manufacturers and offers base incentives of 2.25% to 5% if the company meets a minimum FY 2025-26 turnover of ₹10,000 crore. Target Segment 2 covers domestic brands and offers a flat 5% incentive, along with an additional 3% incentive for domestic design and research and development, subject to a lower turnover threshold of ₹1,000 crore.

Domestic Value Addition and Eligibility

The notification provides an additional incentive of up to 1.5% for companies that source key components domestically for at least 25% of the total mobile units manufactured in a financial year. The scheme also requires screening of Indian brands to verify ownership of genuine intellectual property and design rights.

Important Facts for Exams

• The Production Linked Incentive Scheme for Large Scale Electronics Manufacturing was the predecessor scheme for mobile phone manufacturing incentives.
• FY 2026-27 and FY 2030-31 are the first and last financial years of the scheme period.
• Target Segment 1 has a higher turnover threshold than Target Segment 2.
• Domestic design and research and development receive a separate 3% incentive under Target Segment 2.

Production and Export Targets

The government has projected cumulative mobile phone production of ₹39 lakh crore under the scheme. The scheme is also linked with higher exports and around 60,000 direct jobs.

Related Industrial Policy Context

India has used production-linked incentives in electronics manufacturing to expand domestic assembly and component ecosystems. Mobile phones are covered under the broader electronics manufacturing policy framework of the Government of India.