The government has notified the Mobile Phone Manufacturing Scheme (MPMS), aimed at strengthening domestic mobile phone manufacturing and supporting the growth of Indian mobile phone brands. The scheme has been structured around two target segments. Target Segment 1 will focus on incentivising mobile phone manufacturing, while Target Segment 2 will support Indian mobile phone brands.
Under the second target segment, eligible applicants will be provided a gestation period of one year, giving them time to scale operations and meet the required criteria before becoming eligible for financial incentives.
Mobile phone manufacturers registered in India with a minimum turnover of Rs 10,000 crore in fiscal 2026 will be eligible to apply under the MPMS. The scheme sets a higher threshold for existing brands seeking to claim incentives, with such companies required to achieve additional sales of Rs 5,000 crore over their total fiscal 2026 sales in each financial year for which they seek financial incentives.
The eligibility criteria are also different for electronics manufacturing services (EMS) players. EMS companies will need to have a minimum turnover of Rs 1,000 crore in fiscal 2026 to qualify under the scheme.
The government's latest initiative is aimed at strengthening the domestic mobile phone manufacturing ecosystem while encouraging Indian brands to expand their scale and market presence. By creating separate target segments for manufacturers and Indian brands, the scheme seeks to address both production capacity and brand development.
The emphasis on incremental sales for existing brands also indicates that financial incentives will be linked to additional business generated rather than simply supporting existing levels of activity. Companies will therefore need to demonstrate meaningful growth over their FY26 sales base to qualify for incentives.
For EMS players, the Rs 1,000 crore fiscal 2026 turnover threshold provides an entry criterion for participation, potentially bringing established contract manufacturers into the scheme and supporting the broader electronics manufacturing ecosystem.
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