India's Giant Leap in Mobile Manufacturing: How Rs 62,500 Crore Scheme will Create a Global Tech Powerhouse
India is rapidly moving towards becoming a major global manufacturing hub, transcending its status as merely a large market for mobile phones. To reinforce this objective, the Ministry of Electronics and Information Technology (MeitY) has notified the Mobile Phone Manufacturing Scheme (MPMS). With a budget of Rs 62,500 crore, this ambitious scheme will lay the roadmap to elevate mobile manufacturing in India to new heights.
The scheme aims not only to boost mobile phone production but also to build a robust supply chain by increasing Domestic Value Addition (DVA), strengthen the technical capabilities of Indian companies, and position them competitively on the global stage.
Furthermore, it will encourage Indian brands to become self-reliant in design, Research and Development (R&D), and patents. This initiative will also generate large-scale employment opportunities across the country.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw stated that the scheme would provide a new identity to Indian-owned mobile brands, intellectual property (IP), and indigenous designs. He emphasized that mere manufacturing in India is insufficient; true ownership of the brand, design, and intellectual property must also rest with Indian entities so that they can compete with the world's best products.
Vaishnaw added that the government would ensure Indian IP remains with Indian companies and would collaborate with the industry to develop additional non-financial support measures.
Impact of 'Make in India'
The Prime Minister's 'Make in India' vision has transformed the electronics sector over the past decade. Compared to the 2014-15 fiscal year, electronics manufacturing in India has grown sevenfold, while exports have increased elevenfold.
Mobile phone manufacturing has been the cornerstone of this transformation. Today, mobile phones manufactured in India not only meet domestic demand but also command a strong presence in the global market. The industry has provided employment to thousands of young people, particularly in rural areas. Many manufacturing units have provided employment to between 5,000 and 20,000 people at a single location.
India's Global Standing
Today, India has emerged as the world's second-largest mobile phone manufacturer. Currently, 99.2% of the mobile phones used in the country are manufactured within India. By 2025, smartphones had become India's largest export product, surpassing even traditional exports like diesel fuel and cut diamonds.
New Scheme to Drive Further Growth
The Production Linked Incentive (PLI-LSEM) scheme played a pivotal role in accelerating mobile manufacturing; however, its tenure concluded on March 31, 2026. To build upon that success and establish India as a global leader in mobile manufacturing, the Mobile Phone Manufacturing Scheme (MPMS) has now been implemented.