Union Parliamentary Affairs Minister Kiren Rijiju on Thursday, 17 July 2026, announced that the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore to strengthen India's domestic mobile manufacturing ecosystem.

Context

Rijiju, posting on X, described the decision as 'a transformative step towards making India a global mobile manufacturing hub.' The Cabinet approval marks one of the largest single-scheme outlays directed at the electronics manufacturing sector, nearly four times the initial allocation under the earlier Production Linked Incentive (PLI) scheme for mobile phones launched in 2020.

The announcement came as part of a broader set of #CabinetDecisions cleared in the meeting chaired by PM Modi, signalling continued government emphasis on domestic electronics production under the Make in India and Atmanirbhar Bharat frameworks.

Policy Backdrop

India's push to become a global electronics manufacturing destination has been a central policy theme since 2014, when the Make in India initiative was launched. The PLI scheme for mobile phones and IT hardware, approved in 2020 with an outlay of ₹15,000 crore, is widely credited with attracting large-scale investment from firms including Apple, Samsung, and contract manufacturer Foxconn, driving a sharp rise in both domestic production and mobile phone exports.

The MPMS, with its ₹62,500 crore outlay, appears to extend and scale that incentive architecture to cover the broader mobile value chain — components, sub-assemblies, and finished devices — rather than targeting only large manufacturers. The scheme is expected to be administered by the Ministry of Electronics and Information Technology (MeitY).

Stakeholders and Impact

The primary beneficiaries of the MPMS are expected to be domestic and foreign mobile phone manufacturers, component suppliers, and electronics industry players already operating or seeking to establish operations in India. The scheme's scale suggests it is designed to attract fresh foreign direct investment and anchor global supply chains more firmly on Indian soil.

For consumers, a deeper domestic manufacturing base could over time reduce dependence on imports, exert downward pressure on device prices, and create significant employment across the electronics value chain. India is currently the world's second-largest mobile phone market and has been rapidly growing as an export base, particularly for premium smartphones assembled locally.

What's Next

Attention will now turn to MeitY issuing detailed rollout notifications, including eligibility criteria, incentive structures, and application timelines for companies wishing to participate in the MPMS. Investment proposals from existing and new manufacturers are expected to follow once the scheme's operational guidelines are published.

Export data from MeitY and the Ministry of Commerce in subsequent quarters will serve as early indicators of the scheme's traction. The allocation may also face scrutiny in parliamentary sessions, with opposition members likely to question disbursement mechanisms and benchmarks for measuring the scheme's success in building genuine manufacturing depth rather than final-stage assembly.