₹62,500 crore Mobile Phone Manufacturing Scheme notified for FY 2026-27 to FY 2030-31: incentives of 2.25%–5% for manufacturers, 5% plus 3% for Indian brands
The Ministry of Electronics and IT has notified the Mobile Phone Manufacturing Scheme with an outlay of ₹62,500 crore for FY 2026-27 to FY 2030-31. Target Segment 1 gives manufacturers an incentive of 2.25% to 5%; Target Segment 2 gives Indian brands 5% plus 3% for Indian design and R&D. Up to 1.5% more is available for domestic sourcing of key components.
Key facts
- In force
- Scheme tenure FY 2026-27 to FY 2030-31; notification reported on 21 August 2026
- Who it affects
- Mobile phone manufacturers and EMS companies registered in India, Indian mobile phone brands, component and sub-assembly suppliers
- What it is
- New facility
- Section
- Startup & MSME
- Published
- 21 August 2026
In 30 seconds
- Budgetary outlay of ₹62,500 crore; tenure of 5 years from FY 2026-27 to FY 2030-31, according to the release of 21 August 2026.
- TS1 (mobile phone manufacturing): differentiated incentive of 2.25% to 5%; minimum turnover of ₹10,000 crore in FY 2025-26.
- TS2 (Indian brands): 5% plus an additional 3% for Indian design and R&D; minimum turnover of ₹1,000 crore in FY 2025-26; a gestation period of 1 year may be granted.
- Additional incentive of up to 1.5% for domestic sourcing, if key components are localised for at least 25% of units made in a financial year.
- Applicants must be mobile phone manufacturers, including EMS providers, registered in India; sales and incentives are computed brand-wise.
- The PLI Scheme for Large Scale Electronics Manufacturing ended on 31 March 2026.
हिंदी में सार
इलेक्ट्रॉनिक्स और आईटी मंत्रालय ने ₹62,500 करोड़ की Mobile Phone Manufacturing Scheme अधिसूचित की है, जो वित्त वर्ष 2026-27 से 2030-31 तक चलेगी। निर्माताओं (TS1) को 2.25% से 5% और भारतीय ब्रांडों (TS2) को 5% के साथ भारतीय डिज़ाइन व R&D पर 3% अतिरिक्त प्रोत्साहन मिलेगा। घरेलू कल-पुर्ज़ों की ख़रीद पर 1.5% तक अतिरिक्त प्रोत्साहन का भी प्रावधान है।
What has been notified
The Ministry of Electronics and Information Technology (MeitY) has notified the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore, according to its release of 21 August 2026. The Scheme follows the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), whose tenure ended on 31 March 2026.
The tenure is five years, from FY 2026-27 to FY 2030-31. Applicants are mobile phone manufacturers, including Electronics Manufacturing Services (EMS) providers, registered in India. Sales and incentives payable are computed on a brand-wise basis.
Two target segments
| Point | Target Segment 1 (TS1) | Target Segment 2 (TS2) |
|---|---|---|
| Purpose | Incentivising mobile phone manufacturing | Supporting Indian mobile phone brands |
| Incentive | Differentiated, ranging from 2.25% to 5% | 5% for Indian Brands, plus an additional 3% for Indian design and R&D; non-fiscal support as well |
| Minimum turnover in FY 2025-26 | ₹10,000 crore | ₹1,000 crore |
| Other conditions | Existing brands must meet an annual threshold of ₹5,000 crore every year over and above FY 2025-26 sales. A new brand becomes eligible only after total annual sales of ₹10,000 crore in India, and must then meet the ₹5,000 crore year-on-year threshold | Must satisfy all criteria of an “Indian Brand”. A gestation period of 1 year may be granted |
| Domestic sourcing | Additional incentive of up to 1.5% for both segments | |
Who is an “Indian Brand”
For TS2, the release lists the criteria:
- registered / incorporated in India;
- IP and trademark held within India;
- management control with Indian citizens;
- more than 51% shareholding held by Indian citizens; and
- in-house R&D and design capabilities in India.
The Union Minister for Electronics and IT, Shri Ashwini Vaishnaw, said the Government will undertake a meticulous evaluation to ensure that the intellectual property is genuinely Indian-owned, and that non-fiscal and other support measures will be developed in consultation with the industry.
The domestic sourcing incentive
The additional incentive of up to 1.5% is for domestic sourcing of key components and sub-assemblies, provided such components are localised for a minimum of 25% of total mobile phone units manufactured in a financial year.
Expected outcomes
The Ministry expects cumulative mobile phone production of approximately ₹39 lakh crore during the Scheme tenure and around 60,000 direct jobs.
What manufacturers should check
A company considering the Scheme should first test itself against the FY 2025-26 turnover floor for its segment — ₹10,000 crore for TS1, ₹1,000 crore for TS2 — and, for TS2, against each of the five Indian Brand criteria. The release does not give the application window, the base on which the incentive percentages are applied, or the list of key components; these are to be read from the notified Scheme and its guidelines.
Questions and answers
What is the outlay and tenure of the Mobile Phone Manufacturing Scheme?
According to the release, the Scheme has a budgetary outlay of ₹62,500 crore and a tenure of 5 years, from FY 2026-27 to FY 2030-31.
What incentive does the Scheme give?
For Target Segment 1, a differentiated incentive ranging from 2.25% to 5%. For Target Segment 2, 5% for Indian Brands and an additional 3% for Indian design and R&D. An additional incentive of up to 1.5% is available in both segments for domestic sourcing of key components and sub-assemblies.
Who is eligible under Target Segment 1?
Mobile phone manufacturers, including EMS companies, registered in India with a minimum turnover of ₹10,000 crore in FY 2025-26. Existing brands must meet an annual threshold of ₹5,000 crore every year over and above FY 2025-26 sales.
What makes a company an “Indian Brand” for Target Segment 2?
It must be registered or incorporated in India, hold its IP and trademark within India, have management control with Indian citizens, have more than 51% shareholding held by Indian citizens, and have in-house R&D and design capabilities in India. A minimum turnover of ₹1,000 crore in FY 2025-26 is also required.
What is the condition for the domestic sourcing incentive?
The key components and sub-assemblies must be localised for a minimum of 25% of total mobile phone units manufactured in a financial year.
Published 21 August 2026. Updated 6 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.