Union Home Minister Amit Shah on Wednesday, 15 July 2026, welcomed the Union Cabinet's approval of the Mobile Phone Manufacturing Scheme (MPMS), describing the ₹62,500 crore outlay as a 'big leap towards self-reliance in mobile manufacturing' that will boost production, job creation, and India's standing as a global electronics hub.

Context

Posting on X, Shah said the scheme 'will infuse fresh energy into the industry, rolling out a range of incentives' and strengthen India as a global electronics manufacturing hub. The Cabinet approval marks one of the largest single-scheme commitments to the mobile manufacturing sector in recent years, with the stated twin goals of scaling domestic production and generating employment across the electronics value chain.

The announcement follows a broader pattern of incentive-led industrial policy that the government has pursued since 2014, when the Make in India initiative was launched to reduce the country's dependence on electronics imports, particularly from China.

Policy Backdrop

The MPMS builds on the foundation laid by the Production Linked Incentive (PLI) scheme for mobile manufacturing, first approved in 2020, which provided financial incentives tied to incremental domestic output and drew investments from global manufacturers into India. That earlier scheme is widely credited with integrating India into premium smartphone supply chains and lifting export volumes substantially.

The new scheme extends this incentive architecture with a significantly larger financial envelope of ₹62,500 crore, signalling the government's intent to deepen, rather than merely sustain, India's position in global electronics manufacturing as geopolitical supply-chain diversification accelerates worldwide.

Stakeholders and Impact

The primary beneficiaries are expected to be mobile phone manufacturers — both domestic firms and multinational contract manufacturers — as well as the electronics workforce across India's manufacturing states. State governments hosting existing or planned electronics clusters are likely to compete for investments unlocked by the scheme's incentive structure.

For workers, the government's stated emphasis on 'job creation' suggests the scheme's eligibility or incentive criteria may be linked to employment benchmarks, a design feature used in earlier PLI rounds. Rollout notifications from the Ministry of Electronics and Information Technology (MeitY) are expected to detail eligible companies, investment thresholds, and disbursement timelines.

What's Next

Attention will now shift to MeitY's implementation notifications, which will specify which companies qualify, what production and investment commitments are required, and how incentives will be disbursed over the scheme's tenure. Quarterly production and export data will serve as the key metrics to gauge whether the ₹62,500 crore commitment translates into the manufacturing scale and employment the government has projected.

If the scheme follows the trajectory of its PLI predecessor, India could consolidate its position as the world's second-largest mobile phone producer — a milestone that would carry significant weight in ongoing negotiations over global supply-chain partnerships and trade agreements.