The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore to boost domestic manufacturing, deepen value addition, strengthen supply chains, and enhance India's global competitiveness in electronics manufacturing.

The scheme will be implemented over five years (FY27–FY31) and offers incentive support ranging from 2.25% to 5% on eligible mobile phone sales. It also provides an additional incentive of up to 1.5% for domestic sourcing of key components and 3% for design and R&D to promote the development of Indian mobile phone brands.

Under the scheme, India's cumulative mobile phone production is projected to reach around Rs 39 lakh crore during the implementation period, with a significant increase in exports. The initiative is also expected to create approximately 60,000 direct jobs, further strengthening India's position as a global electronics manufacturing hub.