The acronym MPMS stands for the Mobile Phone Manufacturing Scheme, which is a government scheme approved by the Union Cabinet on July 15, 2026, with a budgetary outlay of ₹62,500 crore. The scheme is designed to further scale up mobile phone production, deepen domestic value addition, strengthen supply chain resilience, and enhance global competitiveness in the electronics sector.
The MPMS was created to build upon the success of the previous Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI-LSEM), whose tenure ended on March 31, 2026. While the PLI-LSEM focused on achieving manufacturing scale, the MPMS aims to solve the problem of low domestic value addition by shifting the focus from assembly-led production to greater indigenous design and component manufacturing.
The scheme operates for a five-year period, from FY 2026-27 to FY 2030-31. Its mechanism involves providing incentive support on eligible sales of mobile phones manufactured in India, with differentiated rates ranging from 2.25% to 5%. Crucially, the MPMS introduces additional incentives to promote deeper localization: up to 1.5% is available for domestic sourcing of key components and sub-assemblies, and a further 3% is offered on eligible sales for product design and Research & Development (R&D) to support the development of Indian brands.
The MPMS is a key component of the government's 'Make in India' and 'Atmanirbhar Bharat' vision, and it connects directly to the broader goal of Viksit Bharat. It is expected to generate around 60,000 direct jobs and aims for a cumulative mobile phone production of approximately ₹39 lakh crore during its tenure. The scheme's focus on value addition and R&D marks a change from the previous PLI-LSEM, which primarily incentivized volume.