Cabinet Approves Mobile Phone Manufacturing Scheme (MPMS)
UPSC / SSC current affairs note · Economy
Why in news
The Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budget of ₹62,500 crore to boost domestic production, enhance supply chain resilience, and increase global competitiveness. This scheme aims to achieve technological sovereignty and promote Indian brands in design and R&D.
Background
Under the 'Make in India' vision, electronics manufacturing has grown 7 times and exports 11 times since FY2014-15. India is now the world's second-largest mobile phone manufacturer, with 99.2% of phones used in the country being domestically manufactured. In 2025, smartphones emerged as India's top export product, surpassing diesel and cut diamonds.
Key facts
The Mobile Phone Manufacturing Scheme (MPMS) has a budgetary outlay of ₹62,500 crore.
Scheme duration is 5 years: FY2026-27 to FY2030-31.
Incentives range from 2.25% to 5% on eligible sales for mobile phone manufacturing in India.
Additional incentive of up to 1.5% for domestic sourcing of key components/sub-assemblies.
Extra 3% incentive on eligible sales for product design and R&D to build Indian brands.
Expected total mobile phone production during the scheme period: approximately ₹39,00,000 crore.
Expected direct employment generation: about 60,000 jobs.
India is the world's second-largest mobile phone manufacturer.
99.2% of mobile phones used in India are domestically manufactured.
In 2025, smartphones became India's largest export product category.
Prelims pointers
- Mobile Phone Manufacturing Scheme (MPMS)
- Budget: ₹62,500 crore
- Duration: FY2026-27 to FY2030-31 (5 years)
- Incentive rates: 2.25% to 5% on eligible sales
- Additional incentives: up to 1.5% for domestic sourcing, 3% for design & R&D
- Expected production: ₹39,00,000 crore
- Expected direct employment: 60,000
- India: 2nd largest mobile phone manufacturer globally
- 99.2% domestic manufacturing of mobile phones
- Smartphones became India's top export in 2025
Mains angles
- Discuss the role of production-linked incentive schemes in boosting domestic manufacturing and exports.
- Analyze the impact of MPMS on India's goal of becoming a global electronics manufacturing hub.
- Evaluate the significance of technological sovereignty and indigenous brand building in the electronics sector.
- Examine the employment generation potential of the mobile phone manufacturing ecosystem.