Cabinet approves ₹62,500-crore Mobile Phone Manufacturing Scheme
The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) on 15 July 2026 with an outlay of ₹62,500 crore for FY 2026-27 to FY 2030-31.
Summary
The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) on 15 July 2026 with a budgetary outlay of ₹62,500 crore over five years, from FY 2026-27 to FY 2030-31. MPMS gives incentives of 2.25% to 5% on eligible sales of mobile phones made in India, up to 1.5% more for domestic sourcing of key components, and an extra 3% for design and R&D to build Indian brands. The scheme expects cumulative mobile phone production of about ₹39 lakh crore and around 60,000 direct jobs. The Cabinet release notes that India is now the world's second-largest mobile phone manufacturer by volume, with 99.2% of mobile phones used in India made domestically.
Key facts
- Approved
- 15 July 2026
- Outlay
- ₹62,500 crore
- Tenure
- 5 years, FY 2026-27 to FY 2030-31
- Incentive
- 2.25%–5% on eligible sales; +1.5% domestic sourcing; +3% design/R&D for Indian brands
- Expected output
- ~₹39 lakh crore cumulative production; ~60,000 direct jobs
- Context
- India world's 2nd-largest mobile maker by volume; 99.2% of phones used in India made domestically
Practice MCQs 3 questions
What is the budgetary outlay of the Mobile Phone Manufacturing Scheme (MPMS) approved on 15 July 2026?
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Correct answer: A — ₹62,500 crore
The Cabinet approved MPMS with a budgetary outlay of ₹62,500 crore.
What additional incentive does MPMS provide on eligible sales for design and R&D to build Indian brands?
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Correct answer: C — 3%
MPMS gives an additional 3% incentive on eligible sales for design and R&D of the product to build Indian brands.
Consider the following statements about the Mobile Phone Manufacturing Scheme (MPMS): 1. The scheme runs from FY 2026-27 to FY 2030-31. 2. India is the world's second-largest mobile phone manufacturer by volume. 3. The scheme gives a flat 10% incentive on all eligible sales. Which of the statements given above are correct?
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Correct answer: D — 1 and 2 only
Statements 1 and 2 are correct. Statement 3 is wrong: the incentive is at differentiated rates of 2.25% to 5%, with extra incentives for domestic sourcing and design.