India's New ₹62,500 Crore Mobile Manufacturing Scheme, Explained

Last updated: August 2026

If you've bought a phone in India in the last few years, there's a good chance it was assembled locally under a production-linked incentive (PLI) scheme you never heard the name of. That scheme has now expired, and the government has replaced it with something bigger and, on paper, more ambitious: the Mobile Phone Manufacturing Scheme, or MPMS.

Here's what MPMS actually funds, how it differs from the PLI scheme it replaces, and why it matters even if you never think about where your phone was made.

What Was Approved, and When

According to BusinessToday's 15 July 2026 report on the Cabinet decision, MPMS carries a ₹62,500 crore outlay running across five financial years, from 2026-27 through 2030-31. It formally replaces the earlier PLI scheme for electronics manufacturing, which ended on 31 March 2026 after several years of driving Apple, Samsung, and their contract manufacturers to expand Indian assembly lines.

What It's Actually Targeting

The stated ambition goes beyond simple assembly. Per the Cabinet approval, MPMS is meant to help India "move beyond assembling and manufacturing smartphones and build its own smartphone brands and design phones within India," with an emphasis on developing homegrown technology and intellectual property rather than only contract-manufacturing devices designed elsewhere. The scheme also specifically calls out job creation in smaller towns and rural areas, building on facilities that already employ over 5,000 workers at individual sites.

The Numbers Behind the Scheme

• Outlay: ₹62,500 crore over five years (FY27-FY31)
• Projected production: Approximately ₹39 lakh crore in smartphone production value over the scheme's duration
• Projected jobs: Around 60,000 direct jobs
• Predecessor: Replaces the PLI scheme for electronics manufacturing, which ended 31 March 2026

These figures come from the government's own projections at the time of Cabinet approval and should be read as targets rather than guaranteed outcomes — the original PLI scheme's real-world results were also debated by industry analysts throughout its run.

What It Could Mean for Phone Prices

The Cabinet approval materials don't spell out a direct pricing impact, and it would be premature to promise cheaper phones off the back of a scheme that's only just been approved. What's more likely in the near term: continued incentives for brands to keep final assembly and eventually component manufacturing onshore, which historically has helped cushion (though not eliminate) the impact of import duties and currency swings on retail prices. Separately, memory chip cost inflation has been the dominant driver of India's rising phone prices through 2026, and MPMS doesn't directly target that.

Why This Matters Even If You Don't Follow Policy

Schemes like this shape which phones get assembled in India, which get imported, and increasingly, whether more of the phone's actual design work happens here rather than abroad. If MPMS succeeds at its stated goal of encouraging homegrown smartphone brands, it's a story worth watching over the next five years — not just for policy wonks, but for anyone curious about where Indian mobile manufacturing is headed next. For more on the manufacturing side of India's phone market, see our coverage of India's USB-C charging mandate and the Q2 2026 IDC report on rising phone prices.

Frequently Asked Questions

What is the Mobile Phone Manufacturing Scheme (MPMS)?

MPMS is a ₹62,500 crore Indian government scheme, approved by the Union Cabinet on 15 July 2026, aimed at boosting local smartphone manufacturing, design, and homegrown brands over five financial years (FY27-FY31).

How is MPMS different from the old PLI scheme?

MPMS replaces the electronics PLI scheme that ended on 31 March 2026. While PLI primarily incentivised assembly volumes, MPMS's stated goal extends further, toward encouraging Indian-designed phones and homegrown brands, not just contract assembly.

Will MPMS make phones cheaper in India?

Not directly or immediately. The scheme targets manufacturing capacity, jobs, and design capability; near-term retail prices are more heavily influenced by global memory chip costs, which MPMS doesn't directly address.

How many jobs is MPMS expected to create?

The government's projections at the time of Cabinet approval cited roughly 60,000 direct jobs over the scheme's five-year run.

Final Thoughts

MPMS is a significant bet on India's next phase of mobile manufacturing, moving the conversation from "assembled in India" toward "designed in India." It's early days, and the real test will be how many of these projections hold up over FY27-FY31. Stay tuned to our blog as we continue tracking how India's manufacturing policy shapes the phones and accessories you buy.