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Uttar Pradesh Targets Deeper Localisation Under New Mobile Scheme
Uttar Pradesh is already a major place where mobile phones are made.
Many companies, including Samsung, Oppo and Vivo, have factories there.
The central government has announced a large scheme worth ₹62,500 crore to encourage more mobile manufacturing.
Companies will receive incentives based on how much they produce and sell.
The money is not divided into fixed state quotas.
The government wants more parts, technology and designs to be developed in India.
It also wants Indian brands and Indian-owned designs to compete globally.
Officials believe Uttar Pradesh could benefit greatly, but the next challenge is moving beyond assembly into deeper manufacturing and exports.
Uttar Pradesh accounts for about 65% of India’s mobile phone production, with major facilities concentrated around Noida and Greater Noida.
The Centre’s ₹62,500 crore Mobile Phone Manufacturing Scheme will provide incentives based on eligible sales from FY2026-27 through FY2030-31.
More than 75 electronics companies have invested over ₹28,000 crore in Uttar Pradesh, while semiconductor-related projects exceed ₹32,000 crore.
India’s domestic mobile phone production reached ₹4,22,000 crore in FY2024, and exports have surpassed ₹1,29,000 crore.
The scheme seeks 35-40% domestic value addition and offers additional incentives for qualifying Indian brands, design and research and development.
- Who
- The Government of India, Uttar Pradesh officials, mobile-phone manufacturers, Minister Ashwini Vaishnaw and industry association chairman Pankaj Mohindroo.
- What
- The Centre has launched the ₹62,500 crore Mobile Phone Manufacturing Scheme to expand domestic production, value addition, Indian design and exports.
- Where
- The largest concentration of facilities is in Noida, Greater Noida and the Yamuna Expressway industrial belt in Uttar Pradesh.
- When
- The scheme was notified on August 21 and applies for five years from FY2026-27 to FY2030-31; the article was published September 13, 2026.
- Why
- The scheme aims to sustain India’s manufacturing momentum, increase domestic value addition and strengthen technology, component, design and export capabilities.
Expansion and localisation opportunity
Implementation and capability challenge
Uttar Pradesh’s likely share
Expansion and localisation opportunity
A Uttar Pradesh government official said the state could receive a substantial share of incentives because many eligible factories operate in Noida, Greater Noida and the Yamuna Expressway belt.
Implementation and capability challenge
The official emphasized that the scheme has no state-wise quotas; incentives depend on eligible production and sales, so Uttar Pradesh is not guaranteed a fixed allocation.
From assembly to manufacturing
Expansion and localisation opportunity
The scheme is expected to encourage deeper localisation, domestic sourcing, Indian brands, design and research and development.
Implementation and capability challenge
Industry representatives said the next phase depends on whether manufacturers can convert existing scale into stronger technology, component and design capabilities.
Indian ownership requirements
Expansion and localisation opportunity
The government offers additional incentives for qualifying Indian brands and Indian design and research and development, potentially supporting domestic companies.
Implementation and capability challenge
Ashwini Vaishnaw said the government will carefully verify that intellectual property, design and branding are genuinely Indian-owned and competitive.
Key facts
- Scheme value
- ₹62,500 crore
- Uttar Pradesh production share
- Around 65% of India’s mobile phone production
- Uttar Pradesh electronics investment
- More than ₹28,000 crore from over 75 companies
- Uttar Pradesh semiconductor-related projects
- More than ₹32,000 crore
- Domestic manufacturing
- 99.2% of mobile phones sold in India are made domestically
- Mobile phone exports
- More than ₹1,29,000 crore
- Domestic value-addition target
- 35-40% national domestic value addition
Quotes
A senior Uttar Pradesh government official
A senior official of the Uttar Pradesh government discussing the scheme’s expected regional impact
“If disbursement broadly tracks output, a very substantial share of the ₹62,500 crore will be earned by units operating in Noida, Greater Noida and the Yamuna Expressway belt. But, I would draw your attention to something more important than the incentive figure. The incentive is a return on investment already made. The investment itself has been coming for some years now.”
thehindubusinessline.com
“Let me be precise about how this scheme works, because it is often misread. MPMS is not a capital-allocation scheme with State-wise quotas. It is an incentive on eligible sales, you produce, you sell, you earn the incentive. So, there is no envelope marked “Uttar Pradesh” sitting in a file in Delhi.”
thehindubusinessline.com
Pankaj Mohindroo
Chairman of the India Cellular and Electronics Association
“Next phase will depend on how effectively industry converts manufacturing scale into deeper technology, component and design capabilities. MPMS provides the framework to support that transition while advancing India towards 35 per cent of global mobile phone manufacturing and the broader $500 billion electronics manufacturing vision.”
thehindubusinessline.com
Sources
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