India approves ₹62,500 cr mobile phone manufacturing scheme

The Indian government has approved a major new industrial policy, allocating 62,500 crore rupees for a five-year initiative designed to transform the country's mobile phone manufacturing sector from an assembly hub into a high-value technology and component production center. The Mobile Phone Manufacturing Scheme (MPMS) was approved by the Union Cabinet on July 15, 2026, and will run from the financial year 2026-27 through 2030-31.

Announced by Information Technology Minister Ashwini Vaishnaw, the scheme represents a strategic evolution from previous incentive programs. It introduces a tiered incentive structure where manufacturers can receive between 2.25% and 5% on eligible sales. Crucially, to address a longstanding reliance on imported parts, the plan offers an additional incentive of up to 1.5% for companies that source key components like displays, batteries, and printed circuit boards domestically. A further 3% incentive is available for Indian brands investing in product design and research and development, a move officials say is aimed at building "technological sovereignty" and indigenous intellectual property.

The government projects the scheme will generate...