Govt notifies Rs 62,500 crore mobile phone manufacturing scheme

The Ministry of Electronics and Information Technology notified the Mobile Phone Manufacturing Scheme on Friday, a Rs 62,500 crore programme to incentivise domestic smartphone assembly and increase local value addition. The scheme, approved by the Union Cabinet on July 15, runs through 2030-31 and replaces the earlier PLI scheme for large-scale electronics manufacturing. Companies get a base incentive of 2.25-5% on eligible sales, with an additional 1.5% for sourcing components like display modules, batteries and USB cables domestically.

The Times of India reports that Electronics and IT Minister Ashwini Vaishnaw said Apple could expand its manufacturing beyond iPhones in India, and Google might shift substantial device exports from China to India. Vaishnaw said the government is working with three Indian companies to develop competitive smartphone designs within 10-14 months. Indian brands majority-owned by Indian citizens with local IP will get a flat 5% incentive with no minimum sales threshold, plus a 3% R&D incentive, and only need Rs 1,000 crore turnover against Rs 10,000 crore for others.

The government aims for cumulative production of Rs 39 lakh crore and exports of Rs 15 lakh crore by 2030-31. IT Secretary S. Krishnan said the scheme would create 60,000 direct jobs and push domestic value addition from the current 23% to 35-40%. Detailed guidelines on disbursement and approvals are expected soon.