Cabinet approves Mobile Phone Manufacturing Scheme (MPMS)

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore. The scheme runs for five years from FY 2026‑27 to FY 2030‑31 and offers incentive support on eligible sales of mobile phones manufactured in India at rates ranging from 2.25 % to 5 %, an additional up to 1.5 % for domestic sourcing of key components, and a further 3 % for design and R&D to build Indian brands. The government expects cumulative production worth Rs 39,00,000 crore and the creation of about 60,000 direct jobs, reinforcing the Make in India agenda and enhancing India’s position as a global electronics hub.