Now Reading: Govt notifies Rs 62,500 crore phone manufacturing incentive scheme
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Govt notifies Rs 62,500 crore phone manufacturing incentive scheme
The government on Friday notified the Mobile Phone Manufacturing Scheme (MPMS), a five-year production-linked incentive programme with a total outlay of Rs 62,500 crore, starting from the current fiscal year. Union Electronics…
The government on Friday notified the Mobile Phone Manufacturing Scheme (MPMS), a five-year production-linked incentive programme with a total outlay of Rs 62,500 crore, starting from the current fiscal year. Union Electronics and IT Minister Ashwini Vaishnaw announced the scheme is effective from April 1, 2026.
Under the guidelines, existing mobile phone and EMS firms must achieve additional sales of Rs 5,000 crore over their FY26 turnover in the first year, with the threshold rising to Rs 25,000 crore by FY31 to claim incentives. New brands need a minimum annual turnover of Rs 10,000 crore in India to qualify. The incentive rate starts at 2.75% for FY27 and FY28 and steps down to 2.25% by FY31, with an extra 1.5% for domestic sourcing of components like display modules and batteries.
Companies with majority Indian ownership and a turnover of Rs 1,000 crore in FY26 are also eligible, and may receive a one-year gestation period. The scheme is implemented through a project management agency, with detailed guidelines to follow.
Indian Opinion Analysis
Both sources report the same core facts about the MPMS notification, but ndtvprofit.com leads with the Rs 10,000 crore turnover barrier for existing brands, framing the scheme as a high-bar incentive for big players. The Economic Times version leads with the Rs 10,000 crore eligibility threshold and also highlights the Rs 1,000 crore alternative for majority Indian-owned firms, presenting a more inclusive picture. Neither source offers critical analysis or external commentary, both are neutral-report wire-style coverage. The careful reader should note that the high incremental sales requirement effectively excludes smaller manufacturers unless they have Indian ownership and the lower threshold, making the scheme a two-tier structure. Watch for the separate implementation guidelines and whether smaller EMS firms can meet the escalating sales targets.
Coverage: 2 sources, 2 neutral
Sources (2): ndtvprofit.com (neutral report), telecom.economictimes.indiatimes.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
