India Unveils ₹62,500 Crore Scheme to Build Homegrown Mobile Brands
The new production-linked incentive program targets domestic value addition and the launch of an indigenous smartphone brand by FY31.
The Indian government has launched the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS), a five-year production-linked incentive (PLI) program running from FY27 to FY31. The initiative aims to deepen domestic value addition and accelerate the growth of indigenous mobile phone brands.
Under the new framework, the government has established two distinct target segments with varying eligibility and incentive structures. For general manufacturers and Electronic Manufacturing Services (EMS) companies, eligibility requires registration in India and a minimum turnover of ₹10,000 crore in FY26. These players are eligible for incentives ranging from 2.25% to 5% on eligible sales, utilizing a tapered structure over the five-year duration of the scheme.
A Shift Toward Indigenous Design
To move beyond simple assembly, the MPMS provides a more accessible pathway for "Indian brands." These companies face a significantly lower turnover barrier of ₹1,000 crore in FY26. Furthermore, the incentive package for domestic brands is substantially higher, offering a total potential incentive of up to 9.5%. This total comprises a 5% base incentive, 1.5% for domestic sourcing, and 3% dedicated to design and research and development (R&D).
Union Electronics and Information Technology Minister Ashwini Vaishnaw stated that the government is coordinating closely with the industry, expressing hope that the tenure of the scheme will result in the successful establishment of an Indian brand.
Scaling Global Exports
This policy follows a period of aggressive growth in the sector. Since FY15, electronics manufacturing in India has grown seven-fold, while exports have increased eleven-fold. The scale of this shift became evident in 2025, when smartphones became India's single-largest exported product, surpassing traditional heavyweights such as cut diamonds and diesel fuel.
By lowering barriers for local players while maintaining high thresholds for global giants, the government is attempting to foster indigenous intellectual property and high-value manufacturing. The goal is to transition the ecosystem from a hub of foreign-led assembly to a center for original design and ownership.
The Road to Launch
Immediate steps are already underway to realize these goals. The government is currently in discussions with three Indian players to establish a domestic mobile phone brand, with the objective of launching a commercial product within the next 18 months. The success of these initial partnerships will likely determine the pace at which India can transition from a manufacturing base to a global brand owner in the competitive smartphone market.