The Government of India has formally launched the Mobile Phone Manufacturing Scheme (MPMS) with an ambitious focus on taking India’s mobile phone manufacturing sector to the next level while building globally competitive Indian brands, intellectual property and product designs.
Announced with effect from April 1, 2026, the ₹62,500 crore scheme is positioned as the next major phase in India’s electronics manufacturing journey. The government expects cumulative mobile phone production, which has reached around ₹22 lakh crore, to nearly double to approximately ₹40 lakh crore during the scheme period.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw said the new initiative is aimed not only at increasing manufacturing volumes but also at creating a stronger Indian-owned mobile phone ecosystem. The government’s focus is now shifting towards “Indian brand, Indian IP and Indian design” after successfully establishing a broad manufacturing and component ecosystem in the country.
The announcement comes at a significant time for India’s electronics industry. Smartphones have emerged as the country’s largest exported product category, while electronics manufacturing has become the third-largest export category. According to the government, the new scheme will help sustain this momentum while encouraging greater domestic value addition, employment and component manufacturing.
Focus Shifts from Manufacturing for Global Brands to Building Indian Brands
A key feature of MPMS is Target Segment 2 (TS2), which is specifically designed to support the development of Indian mobile phone brands. The initiative is expected to provide a platform for domestic companies that have traditionally focused on the Indian market but have faced challenges in raising the capital required for product development, intellectual property and design capabilities.
Vaishnaw explained that TS2 is intended to support Indian-owned IP, Indian design and Indian-owned brands. The government believes that the manufacturing ecosystem is now sufficiently established to enable the next stage of development — creating Indian companies capable of competing with leading global smartphone brands.
The government is taking a measured approach to the initiative and is working closely with industry stakeholders. Three potential players are currently being considered for developing Indian smartphone designs, although the government has not disclosed their names.
The companies are expected to develop products that can compete with the best offerings in their respective market segments. These could include economy, premium, super-premium and high-value smartphone categories.
Indian Design and IP to Be Key Eligibility Criteria
One of the strongest messages from the government is that simply assembling or manufacturing a smartphone in India will not be enough to qualify for the Indian-brand push.
According to Vaishnaw, an Indian brand under the initiative must have Indian design, Indian-owned design IP and Indian ownership of the brand, supported by the domestic manufacturing ecosystem.
The government will closely examine whether the proposed designs are genuinely developed and owned by the participating companies rather than being copies of existing products. The minister stressed that Indian companies will need to demonstrate their own design and intellectual property capabilities.
The government is also encouraging companies to strengthen Six Sigma quality practices, Swadeshi supply chains and talent development programmes. This is expected to create a deeper and more sustainable ecosystem around Indian smartphone brands rather than focusing only on final assembly.
First Indian Brands Could Emerge Within 10–14 Months
The government expects the first meaningful results from the Indian-brand initiative within the next 10 to 14 months. Vaishnaw indicated that a strong Indian mobile phone brand could potentially emerge around the middle of next year, subject to companies finalising their designs, proving ownership of their IP and meeting the scheme’s requirements.
While the government has not revealed the names of the companies involved, it said three potential players currently have the capability and potential to develop Indian brands under the programme.
The government is also considering additional non-fiscal support measures for Indian brands. Details of these measures will be announced progressively following consultation with industry.
Make in India for the World
Exports remain another major pillar of the initiative. The government wants India to continue strengthening its position as a global manufacturing base while increasing domestic employment and value addition.
Vaishnaw emphasised the importance of “Make more in India, for the world”, pointing out that higher manufacturing activity translates into more employment, greater tax revenues and stronger opportunities for MSMEs, logistics companies, component manufacturers and material suppliers.
India has already made considerable progress in domestic component manufacturing. The government highlighted developments in areas such as battery electrolytes, anode materials and cathode manufacturing. Indian component manufacturers have also started exporting components to countries including China, reflecting the growing depth of the domestic electronics ecosystem.
Electronics Manufacturing Could Create Wider Industrial Impact
The government expects the benefits of mobile phone manufacturing to extend well beyond smartphones. Electronics manufacturing has a significant multiplier effect because technologies and components developed for smartphones can be used across several other industries.
Display technologies, for example, can find applications in automobiles, smartwatches, laptops and televisions. Similarly, battery technologies can support drones, medical devices, electric vehicle modules and power banks.
The electronics manufacturing sector is already providing significant employment, with total employment in electronics manufacturing now estimated at more than 25 lakh people. The government expects this number and the associated ecosystem to expand further under MPMS.
India’s domestic value addition in electronics has also been improving. From relatively low levels a decade ago, value addition has now moved into the 25–28% range, with the government expecting this to rise further during the MPMS period.
India Seeks to Become a Global Electronics Manufacturing Hub
The government also highlighted India’s advantages as global technology companies diversify their manufacturing operations. Policy certainty, a large talent pool and strong design capabilities are being positioned as key advantages for India.
The country has developed substantial engineering and design capabilities through global capability centres, technology centres and engineering organisations. These capabilities, combined with an expanding manufacturing ecosystem, could help India attract additional global smartphone and electronics manufacturing investments.
The government sees the opportunity extending beyond smartphones into other electronics categories, including tablets, laptops and other connected devices.
Building the Next Phase of India’s Electronics Story
The launch of MPMS marks a shift in India’s electronics manufacturing strategy — from establishing manufacturing capacity to developing Indian-owned technology, intellectual property and brands.
India has already emerged as a major global manufacturing destination for smartphones, with international brands accounting for a large share of production and exports. The government now wants Indian companies to capture a larger share of the value created through branding, product design and intellectual property.
The ₹62,500 crore Mobile Phone Manufacturing Scheme therefore represents more than an incentive programme for mobile phone production. It is an attempt to build a complete Indian electronics ecosystem — from components and materials to design, manufacturing, branding and global exports.
With the scheme effective from April 1, 2026, the government expects the coming months to bring greater clarity on participating companies, Indian smartphone designs and additional support measures. If the programme delivers as planned, India could see the emergence of a new generation of Indian mobile brands by 2027, strengthening the country’s position not only as a manufacturing hub but also as a creator of globally competitive technology products.
Covered By: Mobility India / Government of India
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