India's mobile manufacturing gets Rs 62,500 crore boost: Here's how the scheme works

Mobile phone companies, including electronics contract manufacturers, having a turnover of Rs 10,000 crore in FY26 will be eligible for benefits under the Mobile Phone Manufacturing Scheme, the government said on Friday.

According to the guidelines of the Rs 62,500-crore Mobile Phone Manufacturing Scheme (MPMS) issued on Friday, mobile phone companies, including electronic manufacturing services (EMS) firms with 51 per cent Indian ownership, having a turnover of Rs 1,000 crore in FY26 will also be eligible for participation in the scheme.

The MPMS is aimed at providing support in the form of production-linked incentives for manufacturing mobile phones in India.

"Mobile Phone Manufacturing Scheme is open officially from today (Friday). It will be effective from April 1, 2026," Union Minister of Electronics and Information Technology Ashwini Vaishnaw said.

Existing brands face annual sales threshold

Under the guidelines, any existing brand will be required to meet the minimum threshold sales of Rs 5,000 crore every year over and above the total sales of FY26 to be eligible for benefits under the scheme.

This means, threshold sales over and above the FY26 turnover will be Rs 5,000 crore for the ongoing 2026-27 fiscal year, Rs 10,000 crore for FY28, Rs 15,000 crore for FY29, Rs 20,000 crore for FY30, and Rs 25,000 crore for FY31.

Any new brand will become eligible for benefits under the scheme only after achieving total annual sales of Rs 10,000 crore in India.

Incentive rates vary through FY31

The incentive amount will be eligible sales in a financial year multiplied by the incentive rates: 2.75 per cent in FY27 and FY28, 2.5 per cent in FY29 and FY30, and 2.25 per cent in FY31.

Additional incentives of up to 1.5 per cent will be provided on sales for domestic sourcing of components such as display modules, batteries, USB cables, etc.

The scheme will be implemented through a project management agency. Guidelines for the implementation of the scheme will be separately issued by the Ministry of Electronics and Information Technology.