1 week ago
India’s Rs 62,500 Crore Scheme Promotes Domestic Mobile Brands
India is creating a large program to make more mobile phones in the country.
It will spend Rs 62,500 crore over five years.
Some support will go to factories that make phones, while another part will help Indian-owned phone brands.
These brands must own their designs and intellectual property instead of copying other companies.
They can receive extra money if they design products and use parts made in India.
Three companies may release new Indian-designed phones within about 10-14 months.
The government expects total phone production to almost double.
Apple may also make products such as iPads and Macs in India, not only iPhones.
India’s Mobile Phone Manufacturing Scheme will provide Rs 62,500 crore over five years from FY 2026-27 to FY 2030-31.
The scheme separates large-scale mobile manufacturing from support for Indian-owned brands with domestic intellectual property and design capabilities.
Indian brands can receive a 5% incentive, plus up to 3% for Indian design and research and development and 1.5% for domestic sourcing.
Three Indian companies could launch indigenously designed phones within 10-14 months, subject to strict eligibility and intellectual-property checks.
The government expects cumulative production to reach about Rs 39-40 lakh crore, while Apple may expand Indian manufacturing beyond iPhones.
- Who
- The Indian government, Union Electronics and Information Technology Minister Ashwini Vaishnaw, and potential Indian mobile brands.
- What
- The government notified the Rs 62,500 crore Mobile Phone Manufacturing Scheme, covering both phone manufacturing and Indian-owned brands.
- Where
- The scheme was discussed in Delhi, India, and applies to manufacturing and brand operations in India.
- When
- The scheme will run from FY 2026-27 to FY 2030-31; three companies could launch phones within 10-14 months.
- Why
- To strengthen manufacturing, local supply chains, domestic value addition, Indian intellectual property, product design and global competitiveness.
Key facts
- Budget
- Rs 62,500 crore
- Duration
- Five years, from FY 2026-27 to FY 2030-31
- Target segments
- TS1 supports mobile manufacturing, including eligible manufacturers and electronics manufacturing services companies; TS2 supports Indian mobile brands.
- Indian-brand support
- Eligible sales receive a 5% incentive, with up to 3% more for Indian design and research and development and up to 1.5% for domestic sourcing.
- Indian-brand requirements
- Brands must be incorporated in India, own their Indian intellectual property and trademark, have Indian management control, exceed 51% Indian ownership, and maintain in-house Indian design and research capabilities.
- Production expectation
- Articles describe an expected increase from about Rs 20 lakh crore to roughly Rs 39-40 lakh crore in cumulative mobile phone production.
- Potential launches
- Three Indian companies could introduce indigenously designed phones within 10-14 months, according to Ashwini Vaishnaw.
- Employment and expansion
- The government says mobile phone and electronics manufacturing employment has crossed 25 lakh; one report also expects about 60,000 direct jobs from the scheme, while Apple may expand production beyond iPhones.
Quotes
Ashwini Vaishnaw
Union Electronics and IT Minister of India
“We had a mobile manufacturing ecosystem, but because of the tax issues and because of the Chinese onslaught, it became impossible for them to compete in the market. Now that we have been able to establish the ecosystem back in our country, the time has come when we should now be focusing on developing Indian brand--Indian brand, Indian IP, Indian design”
financialexpress.com
wionews.com
“The design has to be your own design. It cannot just be a copycat. They have to come up with the design and prove that the IP is their own”
financialexpress.com
Sources
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