Union Cabinet Approves 'Mobile Phone Manufacturing Scheme' with Rs.62,500 Crore Outlay

 Union Cabinet Approves 'Mobile Phone Manufacturing Scheme' with Rs.62,500 Crore Outlay

• Approved on: 15 July 2026 by Union Cabinet chaired by PM Modi.
• Ministry: Ministry of Electronics and IT.[MeitY]
• Scheme: Mobile Phone Manufacturing Scheme [MPMS] under Make in India.
• Outlay: Rs 62,500 Crore.
• Duration: 5 years - FY27 to FY31.
• Succeeds: Production Linked Incentive Scheme for Large Scale Electronics Manufacturing [PLI-LSEM] concluded 31 March 2026.
• Incentives:
  • Sales-linked incentives 2.25% to 5% for eligible manufacturers.
  • Additional upto 1.5% for higher domestic sourcing of key components and sub-assemblies.
  • Additional 3% for Indian brands investing in product design and R&D on eligible sales.
• Targets: Rs 39 lakh Cr cumulative mobile phone production, Rs 15 lakh Cr exports, 60,000 direct jobs.
• UPSC Relevance: GS3 - Economy, Manufacturing, PLI, Value Addition.