India to have homegrown smartphone brand by mid-2027: Ashwini Vaishnaw
What's the story
India is all set to witness the emergence of a competitive homegrown mobile phone brand by mid-2027, Electronics and IT Minister Ashwini Vaishnaw announced. The announcement comes as part of the government's efforts to boost local manufacturing and reduce dependence on foreign brands. Currently, three Indian players are in the race for this coveted position.
Government initiative
Government's mobile phone manufacturing scheme
The Indian government has introduced the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to support Indian brands and incentivize large-scale mobile phone manufacturing.
The scheme, which will run from FY 2026-27 to FY 2030-31, has two target segments: big mobile phone manufacturing companies and Indian mobile phone brands.
It was notified by the Ministry of Electronics and Information Technology (MeitY) after Union Cabinet approval on July 15.
Scheme objectives
Rebuilding India's mobile manufacturing ecosystem
Vaishnaw emphasized the need to rebuild India's mobile manufacturing ecosystem, which was previously hampered by tax issues and competition from Chinese brands.
He said, "Now that we have rebuilt the ecosystem in the country, the time has come to refocus on building an Indian brand, with Indian IP and Indian design."
This statement underscores the government's commitment to fostering indigenous innovation in the tech sector.
Market dominance
Dominance of Chinese brands in India
India's smartphone market is largely dominated by foreign brands, especially Chinese ones.
According to Counterpoint Research, four of the top five smartphone brands in India by shipments in Q2 2026 were Chinese. These include vivo (17.8% share), OPPO (13.6%), Xiaomi (including POCO) with a 13.4% share, and realme with a 10% share.
Together they account for about 55% of the market, highlighting the need for strong homegrown alternatives like Lava, while Micromax and Jio have smaller or more limited businesses.
Scheme benefits
Who can apply under the MPMS?
Under the MPMS, mobile phone manufacturers and EMS companies registered in India with a minimum turnover of ₹10,000 crore in FY 2025-26 are eligible.
Existing brands will have to meet annual threshold sales over their FY 2025-26 sales to claim incentives.
For Indian brands, the eligibility threshold is ₹1,000 crore in FY 2025-26.
The scheme offers both fiscal and non-fiscal support to Indian mobile phone brands, while only production-linked incentives are offered to mobile phone manufacturers.