# Indian Smartphone Brands to Get Big Boost as Government Unveils Rs 62,500 Crore MPMS Scheme to Challenge Apple, Samsung and Vivo

> The Indian government has announced the Mobile Phone Manufacturing Scheme (MPMS) with a budget of Rs 62,500 crore to strengthen domestic brands, target Rs 39 lakh crore in production, and create 60,000 direct jobs.

**Type:** article · **Category:** Business · **Published:** 2026-08-21 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/business/bharatiya-smartaphona-knpaniyon-ko-milegi-nai-takata-62-500-karora-rupaye-ki-mpms-yojana-se-apple-samsung-aura-vivo-ko-chunauti-de-19629 · **Language:** English
**Tags:** Mobile Manufacturing Scheme, MPMS Scheme, Electronics Export, Indian Smartphones, Make in India, Tech News

In a major push to expand domestic electronics and smartphone manufacturing, the Indian government has announced the Mobile Phone Manufacturing Scheme (MPMS). This comprehensive flagship program comes with an allocated financial outlay of Rs 62,500 crore and will operate across a five-year period starting from FY 2026-27 through FY 2030-31. The primary objective of the initiative is to enhance India's global competitiveness in mobile phone manufacturing, expand production capacity, build a resilient domestic supply chain, and empower homegrown Indian mobile phone brands to expand into international markets. Through targeted policy support, the government aims to help local smartphone makers compete effectively against global market leaders such as Apple, Samsung, and Vivo.

## Tiered Incentive Structure and Dedicated Support for Indian R&D
Under the guidelines of the MPMS, participating manufacturing companies will be eligible for financial incentives ranging between 2.25% and 5% based on specific criteria. To give local manufacturers a competitive edge, the scheme sets the incentive rate at the maximum ceiling of 5% specifically for domestic Indian brands. Furthermore, to deepen local component integration and reduce dependence on imports, the scheme offers an additional incentive of up to 1.5% for domestic procurement of vital components and sub-assemblies. This additional support applies to locally sourced display modules, camera modules, back covers and chassis, battery cells, and USB cables or chargers. In addition, home-grown brands investing in domestic Indian design and R&D will receive a 3% supplementary incentive, aimed at fostering indigenous intellectual property and engineering capabilities.

## Targeting Rs 39 Lakh Crore Production and 60,000 Direct Jobs
Over the five-year operational tenure of the MPMS, the government projects that total cumulative mobile phone production in India could reach a value of approximately Rs 39 lakh crore. Driven by this significant scale of production, mobile exports from India are targeted to rise to around Rs 15 lakh crore. The initiative is also set to deliver a significant boost to employment generation across the electronics manufacturing landscape. Official estimates indicate that the scheme will create around 60,000 direct jobs in mobile assembly, component manufacturing, and associated sub-sectors. By simultaneously targeting production growth, export expansion, and job creation, the policy intends to deliver progress across all three critical economic fronts.

## Decade of Manufacturing Growth and Cross-Sectoral Technology Transfer
The announcement builds upon a decade of rapid expansion in India's electronics sector. Government data covering the period from 2014 to 2026 reveals that electronics production in the country grew approximately 7-fold, while electronics exports surged 11-fold. During the same period, mobile phone production expanded by 33 times, and mobile phone exports registered a massive 166-fold jump. As a result of this sustained growth, India has emerged as the second-largest mobile phone manufacturer in the world by volume, with locally manufactured devices accounting for nearly 99.2% of all mobile phones used within the country. Consequently, electronics has grown to become India's third-largest export category, increasing its share in total electronics exports from roughly 1.7% in 2014-15 to nearly 11% in 2025-26. Government officials note that the technological and manufacturing capabilities established through mobile phone production will generate positive spillover effects into adjacent hardware industries, including laptops, smartwatches, TWS earbuds, smart speakers, drones, medical devices, EV modules, and automobile cameras.

## What this means for you
- **Across India:** The Rs 62,500 crore initiative will strengthen electronics manufacturing and generate around 60,000 direct jobs nationwide.
- **For Consumers:** Support for local brands and domestic component sourcing could lead to more affordable and competitive smartphones in the market.

## Questions & Answers

### 1. What is the Mobile Phone Manufacturing Scheme (MPMS)?
It is a government incentive program with a budget of Rs 62,500 crore to boost mobile manufacturing, strengthen domestic brands, and expand exports over five years.

### 2. What is the incentive rate for Indian mobile brands under MPMS?
Indian brands will receive an incentive rate of 5%, along with an extra 3% incentive for domestic design and R&D.

### 3. What are the production and export targets under this scheme?
The scheme targets total mobile production worth Rs 39 lakh crore and mobile exports worth Rs 15 lakh crore over five years.

### 4. How many direct jobs are expected to be created by MPMS?
The scheme is expected to create approximately 60,000 direct jobs across mobile assembly and component manufacturing.

### 5. What percentage of mobile phones used in India are currently made in India?
Approximately 99.2% of mobile phones used in India are currently manufactured within the country.

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