India launches ₹62,500cr mobile phone manufacturing scheme to boost production
India just rolled out the ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS) on August 21, 2026.
The idea? To make more phones (and their parts) right here at home.
Companies get incentives of 2.25% to 5% for five years if they ramp up production and sales, with a special push for Indian brands and components.
India could lift smartphone value addition
With the local market already at 150 million phones a year, exports are set to drive even more growth.
Ashok Chandak estimated that India could increase domestic value addition in smartphones from around 23% currently to 35% to 40% if the government's different schemes work together.
It also ties into other programs like ECMS, Semicon 2.0, and DLI, which focus on making key parts like camera modules in India, so we're not just assembling phones but actually building them.
The government hopes this will mean fewer imports and more innovation from Indian tech companies.