SF Prep Notes

Centre notifies ₹62,500-crore Mobile Phone Manufacturing Scheme

MeitY notified the Mobile Phone Manufacturing Scheme (MPMS) with an outlay of ₹62,500 crore on 21 August 2026 to scale up production, raise domestic value addition and back Indian-owned phone brands.

Summary

The Ministry of Electronics and Information Technology (MeitY) notified the Mobile Phone Manufacturing Scheme (MPMS) on 21 August 2026 with a budgetary outlay of ₹62,500 crore for five years, from FY 2026-27 to FY 2030-31. The scheme follows the PLI scheme for Large Scale Electronics Manufacturing, whose tenure ended on 31 March 2026. It has two target segments: TS1 gives manufacturers, including EMS firms with at least ₹10,000 crore turnover in FY 2025-26, a differentiated incentive of 2.25% to 5%; TS2 gives Indian brands 5% plus an extra 3% for Indian design and R&D. Both segments can earn up to 1.5% more for sourcing key components domestically. Minister Ashwini Vaishnaw said the scheme should create about 60,000 direct jobs and cumulative production of about ₹39 lakh crore, and that India could see its first strong indigenous mobile brand by mid-2027.

Key facts

Outlay
₹62,500 crore
Tenure
FY 2026-27 to FY 2030-31 (5 years)
TS1 incentive
2.25%–5% for manufacturers (min. ₹10,000 cr turnover)
TS2 incentive
5% for Indian brands + 3% for Indian design and R&D
Component bonus
Up to 1.5% for domestic sourcing
Expected
~60,000 direct jobs; ~₹39 lakh crore production

Practice MCQs 4 questions

Q1

What is the budgetary outlay of the Mobile Phone Manufacturing Scheme notified by MeitY in August 2026?

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Correct answer: B — ₹62,500 crore

The Mobile Phone Manufacturing Scheme (MPMS) has a budgetary outlay of ₹62,500 crore.

Q2 Advanced

What is the tenure of the Mobile Phone Manufacturing Scheme (MPMS)?

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Correct answer: D — FY 2026-27 to FY 2030-31

The scheme runs for five years, from FY 2026-27 to FY 2030-31; TS2 applicants may get a one-year gestation period.

Q3 Advanced

Under Target Segment 2 (TS2) of the Mobile Phone Manufacturing Scheme, what incentive do Indian brands get?

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Correct answer: A — 5%, plus an additional 3% for Indian design and R&D

TS2 gives Indian brands 5%, plus an additional 3% for Indian design and R&D; up to 1.5% more is available for domestic sourcing of key components.

Q4 Advanced

Consider the following statements about the Mobile Phone Manufacturing Scheme: 1. It follows the PLI scheme for Large Scale Electronics Manufacturing, whose tenure ended on 31 March 2026. 2. To be eligible under Target Segment 1, a manufacturer needs a minimum turnover of ₹10,000 crore in FY 2025-26. Which of the above is/are correct?

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Correct answer: C — Both 1 and 2

Both are correct. TS1 also requires existing brands to add ₹5,000 crore in sales each year over FY 2025-26.

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