Mobile Phone Manufacturing Scheme (MPMS)
Prelims:
Indian
Economy, Government Schemes, Science & Technology
Mains:
GS
Paper III: Indian Economy, Science & Technology
Current relevance:
The Union Cabinet, chaired by the Prime Minister,
has approved the Mobile Phone Manufacturing Scheme (MPMS) with a
budgetary outlay of ₹62,500 crore to boost domestic manufacturing.
Highlights:
1. MPMS is a Central Sector Scheme aimed at
promoting large-scale mobile phone manufacturing in India by providing
production-linked incentives, encouraging domestic value addition,
strengthening supply chains, and supporting indigenous brands.
2.
Key
Features:
i.
The
scheme also supports Indian brands by promoting indigenous design, research
& development (R&D), technological self-reliance, and patent
creation.
ii.
Eligible
mobile phone manufacturers will receive production incentives ranging
from 2.25% to 5% on eligible sales.
iii.
An additional
incentive of up to 1.5% is provided for using domestically sourced
components and sub-assemblies.
iv.
Indian
brands will receive an additional
3% incentive for product design and research & development (R&D).
3.
Major
Achievements:
i.
Growth
under Make in India: Since FY 2014–15, electronics manufacturing
has grown seven-fold, while electronics exports have increased
eleven-fold under the Make in India initiative.
ii.
India
is the world's second-largest mobile phone manufacturer by volume.
iii.
High
Domestic Production:
Around 99.2% of mobile phones used in India are now manufactured
domestically.
iv.
Leading
Export Product: In
2025, smartphones became India's largest exported product category,
surpassing traditional exports such as diesel fuel and cut diamonds.
v.
The
Production Linked Incentive Scheme for Large Scale Electronics Manufacturing
(PLI-LSEM) played a pivotal role in establishing India as a global hub
for mobile phone manufacturing before its conclusion on 31 March 2026.
Source: PIB - https://www.pib.gov.in/PressReleasePage.aspx?PRID=2284789®=48&lang=1