1 week ago
India Launches Rs 62,500-Crore Mobile Production Scheme for Brands
India has started a large program to encourage companies to make mobile phones in the country.
The program is worth Rs 62,500 crore.
It officially starts on April 1, 2026, and will run through FY31.
Large companies that meet sales requirements can receive production-linked incentives.
Some electronics manufacturing firms with Indian ownership can also qualify under a separate threshold.
Existing brands must increase their sales by specified amounts each year.
New brands must first reach Rs 10,000 crore in annual sales in India.
The government is also speaking with three Indian companies about creating a local phone brand.
One report gives incentive rates of 2.75%, 2.5% and 2.25%, while another describes the range as 2.5% to 5%.
The government launched the Rs 62,500-crore Mobile Phone Manufacturing Scheme on Friday, effective April 1, 2026.
Eligible applicants generally need to be registered in India and have FY26 turnover of Rs 10,000 crore.
Electronics manufacturing services firms with 51% Indian ownership and Rs 1,000 crore FY26 turnover may also participate.
Existing brands must achieve incremental sales rising from Rs 5,000 crore in FY27 to Rs 25,000 crore in FY31.
The scheme offers additional support for domestic component sourcing and seeks to develop Indian mobile phone brands.
- Who
- The Government of India, mobile phone manufacturers, electronics manufacturing services firms, Indian brands, and Union Minister Ashwini Vaishnaw.
- What
- The government launched the Rs 62,500-crore Mobile Phone Manufacturing Scheme, offering production-linked incentives for phones made in India.
- Where
- India.
- When
- The scheme opened Friday, will take effect on April 1, 2026, and is planned to run through FY31.
- Why
- To increase domestic value addition, support mobile phone manufacturing, and develop strong Indian mobile brands.
Key facts
- Scheme value
- Rs 62,500 crore
- Operating period
- FY27 through FY31
- General eligibility
- Applicant companies must be registered in India and have FY26 turnover of Rs 10,000 crore
- EMS eligibility
- Electronics manufacturing services firms with 51% Indian ownership and Rs 1,000 crore FY26 turnover may participate
- Existing-brand targets
- Incremental sales above FY26 levels must rise from Rs 5,000 crore in FY27 to Rs 25,000 crore in FY31
- New-brand requirement
- A new brand must achieve annual sales of Rs 10,000 crore in India before becoming eligible
- Indian-brand initiative
- The government is in talks with three Indian players, with a product expected within 18 months
- Reported incentive rates
- One set of details lists 2.75% in FY27-FY28, 2.5% in FY29-FY30, and 2.25% in FY31; the article also describes a range of 2.5% to 5%
Quotes
Ashwini Vaishnaw
Union Minister of Electronics and Information Technology
“We have asked these three players to come up with design options. The challenge we have given them is that their design has to match the best in the sector. There are economy, premium and super-premium, and very high-value mobile phone segments. These players have suggested that they would like to opt for the segment that has high volume.”
rediff.com
“We are very closely coordinating with the industry and we hope that during the tenure of this mobile phone manufacturing scheme, we have good success on having an Indian brand as well.”
rediff.com
Sources
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