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Informist, Friday, Aug. 21, 2026

 

NEW DELHI – India could see a globally competitive mobile phone brand emerging as early as the middle of next year, according to Union Minister for Electronics and Information Technology Ashwini Vaishnaw. "We have asked multiple players, to be precise, three players, to come up with design options...in this target segment of developing Indian brand, we are very particular that the design has to be your own design...Then only we will approve it under the MPMS scheme (Mobile Phone Manufacturing Scheme)," he said Friday.

 

The government Friday officially launched the Mobile Phone Manufacturing Scheme, effective Apr. 1, 2026. The Union Cabinet had last month approved the scheme with a total outlay of INR 625 billion for five years. "We see three potential players who have the potential of coming up in a timeframe of let's say about 10 to 14 months from now, which means somewhere in the middle of next year, we should see a good Indian brand coming out in the market," Vaishnaw said.

 

Key objectives of the scheme include ramping up mobile phone manufacturing in India and building Indian brands in the segment, classified as the two target segments under the scheme. Under target segment 2, the scheme will extend fiscal as well as non-fiscal support. "The non-tariff or rather the other methods that we have to implement will all be implemented in consultation with the industry," Vaishnaw said.

 

The incentive outlay under the scheme would be fungible among the two target segments based upon the fund requirement and response received under the scheme. 

 

Mobile phone manufacturers registered in India with a minimum turnover of INR 100 billion in 2025-26 (Apr-Mar) would be eligible under the scheme. To avail the incentive, they would have to fulfil the requirement of threshold sales of INR 50 billion year over year. The scheme provides incentive support on eligible sales for manufacturing of mobile phones in India at differentiated rates ranging from 2.25% to 5%. 

 

The scheme offers incentives of up to 1.5% on eligible sales for domestic sourcing of key components or sub-assemblies such as display module, camera module, enclosure, batteries (including cells), and USB cables (including connectors). An applicant would be eligible to claim this additional incentive only if such components and sub-assemblies are localised for at least 25% of the total mobile phone units sold in a financial year. It would be paid on a pro-rata basis.  End

 

Reported by Shakshi Jain

Edited by Avishek Dutta

 

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