India Raises the Bar for Smartphone Makers Under New Production Scheme
What Happened
The government has notified the ₹62,500-crore Mobile Phone Manufacturing Scheme (MPMS), making mobile phone makers and EMS firms with at least ₹10,000 crore turnover in FY26 eligible for incentives. Indian-owned EMS companies with 51% domestic ownership and ₹1,000 crore turnover can also participate. The scheme will run for five years from FY27 to FY31.
Key Takeaways
The scheme is designed to boost domestic smartphone production, local value addition and exports. Incentives are linked to incremental sales, while additional rewards of up to 1.5% are available for sourcing components locally, encouraging a stronger electronics supply chain in India.