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REGD. No. D. L.-33004/99
The Gazette of India
CG-DL-E-21082026-275648
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 232]
NEW DELHI, FRIDAY, AUGUST 21, 2026/SHRAVAN 30, 1948
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
(IPHW Division)
SCHEME NOTIFICATION
New Delhi, the 21st August, 2026
Subject: Mobile Phone Manufacturing Scheme (MPMS)
F. No. W/11/2026-IPHW.—
1. BACKGROUND
1.1. Prime Minister's Make in India vision has propelled electronics manufacturing to grow 7 times and
exports to grow 11 times since FY 2014-15. The electronics manufacturing sector has also emerged
as a major employer, especially for young men and women from far flung villages. Several
manufacturing plants employ more than 5,000 people at a single location, with employment at some
facilities reaching 20,000.
1.2. This growth is even more prominent in mobile phone manufacturing. Smartphones have emerged as
the single largest exported product in 2025, surpassing “diesel fuel” and “cut diamonds”. This is a big
achievement for our country and a clear demonstration of PM's vision of Make in India, Atmanirbhar
Bharat and Swadeshi.
1.3. To sustain the current growth momentum and maintain competitiveness, Mobile Phone
Manufacturing Scheme is being launched.
2. MOBILE PHONE MANUFACTURING SCHEME (MPMS)
The Scheme shall provide fiscal support in the form of production-linked incentives for the
manufacturing of mobile phones in India and to support Indian mobile phone brands.
3. OBJECTIVE
The Scheme aims to increase global competitiveness by further enhancing the scale, deepening the
mobile manufacturing supply chain through higher domestic value addition (DVA) and stronger
domestic manufacturing capabilities. The Scheme will also build Indian mobile brands and generate
employment.
4. BUDGET OUTLAY
The scheme is budget limited with budgetary outlay of ₹ 62,500 crores, including administrative
charges. The incentive outlay under the scheme shall be fungible among the two target segments
based upon the fund requirement and response received under the scheme.
5. TARGET SEGMENTS (TS)
There shall be two target segments under the scheme:
Target Segment 1 (TS1): Incentivising mobile phone manufacturing
Target Segment 2 (TS2): Supporting Indian mobile phone brands
6. TENURE OF THE SCHEME
The scheme tenure shall be 5 years, i.e. from FY 2026-27 to FY 2030-31. Applicants under TS2 may
be granted a gestation period of 1 year.
7. TS1: INCENTIVISING MOBILE PHONE MANUFACTURING
7.1. Eligibility
The mobile phone manufacturers, including EMS, registered in India having a minimum turnover of ₹
10,000 crore in FY2025-26 shall be eligible under the scheme.
Annual Thresholds for Existing Brands: To become eligible for claiming the incentive for a
particular financial year, any existing brand shall meet the minimum threshold sales of ₹ 5,000 crore
every year over and above the total sales of FY 2025-26.
Such thresholds for 5 years shall be as mentioned in the table:
+-------------------+-------------------------------------+
| Financial Year (FY) | Threshold Sales over & above the |
| | Total Sales in FY 2025-26 |
| | (in ₹ cr) |
+===================+=====================================+
| 2026-27 | 5,000 |
+-------------------+-------------------------------------+
| 2027-28 | 10,000 |
+-------------------+-------------------------------------+
| 2028-29 | 15,000 |
+-------------------+-------------------------------------+
| 2029-30 | 20,000 |
+-------------------+-------------------------------------+
| 2030-31 | 25,000 |
+-------------------+-------------------------------------+
*Existing Brands: Those brands which have domestic manufacturing and sales in FY 2025-26.
Eligibility for a new brand: The new brand shall become eligible under the scheme only after it has
achieved total annual sales of ₹10,000 crore in India. To avail the incentive, it would have to fulfill the
requirement of threshold sales of ₹ 5,000 crore year over year.
7.2. Basis for Computation
FY 2026-27 (1st April 2026 to 31st March 2027) shall be the first performance year.
Baseline Sales: Baseline Sales for a financial year shall be the total domestic sales of target segment
product for the brand in preceding financial year plus an increment of 15%. Therefore, the baseline
sales shall be moving in nature.
Eligible Sales: Eligible Sales for a particular Financial Year (FY) shall be calculated by subtracting
the Baseline Sales from total target segment sales of that FY for the brand.
The computation of Eligible Sales, Baseline Sales and Threshold Sales shall be calculated on a brand-
wise basis.
7.3. Basis of Incentives
The incentives shall be provided on Eligible Sales of mobile phones manufactured in India. The
quantum of incentive for any FY shall be Eligible Sales multiplied by incentive rates, subject to
meeting the threshold criteria.
Incentive Rate: The incentive shall comprise two parts as below:
a) The part of Eligible Sales, i.e. upto the difference between the average sale of FY 2025-26, FY
2024-25 and FY 2023-24 and the Baseline Sales for a particular FY, shall be incentivized in a
tapered manner.
Incentive rate shall be as mentioned below:
+-----------+-----------------------+
| FY | Incentive rate (in %) |
+===========+=======================+
| 2026-27 | 2.75 |
+-----------+-----------------------+
| 2027-28 | 2.75 |
+-----------+-----------------------+
| 2028-29 | 2.5 |
+-----------+-----------------------+
| 2029-30 | 2.5 |
+-----------+-----------------------+
| 2030-31 | 2.25 |
+-----------+-----------------------+
b) The remaining Eligible Sales, over and above the sales of para (a) above, shall also be
incentivized in a tapered manner.
Incentive rate in this case shall be as mentioned below:
+-----------+-----------------------+
| FY | Incentive rate (in %) |
+===========+=======================+
| 2026-27 | 5 |
+-----------+-----------------------+
| 2027-28 | 5 |
+-----------+-----------------------+
| 2028-29 | 4.5 |
+-----------+-----------------------+
| 2029-30 | 4.5 |
+-----------+-----------------------+
| 2030-31 | 4 |
+-----------+-----------------------+
Additional incentives on domestic sourcing: Additional incentives of upto 1.5% shall also be
provided on Eligible Sales for domestic sourcing of key components/ sub-assemblies such as display
module, camera module, enclosure, batteries (including cells), and USB cables (including connectors)
An applicant would be eligible to claim this additional incentive only if such components/ sub-
assemblies are localized for a minimum of 25% of the total mobile phone units sold in a financial
year. This additional incentive would be paid on a pro-rata basis.
Additional incentive available for domestic sourcing of various components/sub-assemblies would be
at the rate as below:
+-----------------------------------+-------------------------------------+
| Sub-Assemblies / Components | Additional Incentive Rate for domestic|
| | sourcing |
+===================================+=====================================+
| Display Module | 0.30% |
+-----------------------------------+-------------------------------------+
| Camera Module | 0.30% |
+-----------------------------------+-------------------------------------+
| Enclosure | 0.50% |
+-----------------------------------+-------------------------------------+
| Batteries (including cells) | 0.20% |
+-----------------------------------+-------------------------------------+
| USB cables (including connectors) | 0.20% |
+-----------------------------------+-------------------------------------+
| Total | 1.50% |
+-----------------------------------+-------------------------------------+
Incentive Ceiling: Brand-wise incentive ceiling shall be determined based on the annual commitment
submitted by the applicant or brand. The disbursement of incentives would be limited to cumulative
annual commitment or the overall budgetary outlay for the scheme, whichever is lower.
8. TS2: SUPPORTING INDIAN MOBILE PHONE BRAND
The Scheme shall extend fiscal as well as non-fiscal support under this target segment.
8.1. Eligibility:
Mobile phone manufacturers, including EMS, registered in India having a minimum turnover of
₹1,000 Cr in FY2025-26 shall be eligible under the scheme.
Indian brands under this target segment must satisfy the following conditions:
a) The brand should be registered/incorporated in India.
b) Intellectual Property (IP) and trademark for the brand should be held within India.
c) Management control of the brand lies with Indian citizens
d) Indian citizen should have more than 51% shareholding in the entity claiming Indian Brand
e) In-house R&D and design capabilities in India.
Annual Thresholds: There shall NOT be any minimum Threshold Sales requirement for Indian
brands.
Selection of the Indian brands for eligibility under the scheme shall be done by the Empowered
Committee (EC).
8.2. Basis for Computation
FY 2026-27 shall be the first performance year. In case applicant opts for gestation period, then FY
2027-28 shall be the first performance year.
Baseline Sales: Baseline Sales shall be the sales during FY 2025-26. In case, applicant opts for a
gestation period, then the Baseline Sales shall be sales during FY 2026-27.
Eligible Sales: Eligible Sales for a particular Financial Year (FY) shall be calculated by subtracting
the Baseline Sales from total sales of that FY for that brand.
The computation of Eligible Sales and Baseline Sales shall be calculated on a brand-wise basis.
8.3. Basis of Incentives
Incentive: The incentive shall be provided on Eligible Sales of mobile phones manufactured in India.
The quantum of incentive for any FY shall be Eligible Sales multiplied by incentive rates.
Incentive Rate: Incentives shall be provided @5% on the Eligible Sales.
Additional incentives on domestic sourcing: The criteria for computation of additional incentives
shall be same for both the target segments. (refer para 7.3)
Additional incentives on design and Research & Development (R&D): An additional incentive
@3% shall also be given on Eligible Sales for Indian design and R&D of the product.
Non-Fiscal Support
For building an Indian brand, it is imperative that both fiscal and non-fiscal measures work in tandem.
The Government may take necessary non-fiscal measures as and when required. The Empowered
Committee shall recommend appropriate non-fiscal measures.
9. OTHER ELIGIBILITY
Any applicant making multiple applications shall NOT be eligible. Eligibility under the scheme shall
not affect eligibility under any other Scheme and vice-versa.
10. APPROVAL AND DISBURSEMENT PROCESS
Incentives shall be disbursed to the mobile phone manufacturers including EMS companies in India.
However, the computation for achieving Eligible Sales, Threshold Sales and Baseline Sales shall be
worked out for the brand. In case a brand is getting their phones manufactured through more than one
EMS company, then the brand shall provide necessary certification for Baseline Sales, Threshold
Sales and Eligible Sales.
The approval and disbursement process shall be dealt in Scheme guidelines. Applicant can submit
their claim on a quarterly basis subject to meeting the eligibility criteria.
11. NODAL AGENCY
The Scheme shall be implemented through a Project Management Agency (PMA).
PMA shall be responsible for providing secretarial, managerial and implementation support and
carrying out other responsibilities as assigned by MeitY from time to time. Detailed functioning and
responsibilities of the PMA will be elaborated in the Scheme Guidelines.
For carrying out activities related to the implementation of Mobile Phone Manufacturing Scheme,
PMA would, inter-alia, be responsible for:
a) Appraisal of applications and verification of eligibility for support under the Scheme
b) Examination of claims eligible for disbursement of incentive under the Scheme
c) Compilation of data regarding progress and performance of the Scheme including Incremental
Investment and Eligible Sales of Manufactured goods for companies under the Scheme
12. EMPOWERED COMMITTEE (EC)
An Empowered Committee (EC) shall be an inter-ministerial committee chaired by Secretary MeitY.
The Committee will consist of members from NITI Aayog, Department of Economic Affairs,
Department of Expenditure, Department of Revenue, DPIIT and DGFT not below the rank of Joint
Secretary.
The EC will consider applications, as found eligible by the PMA under the Scheme, and recommend
for approval of Competent Authority.
The EC will consider claims, as examined and recommended by the PMA, for disbursement as per
the laid down procedure, and recommend for approval of Competent Authority.
The EC will conduct a periodic review of eligible companies with respect to their performance under
the Scheme including employment generation, production and value addition, etc.
The EC may recommend any modifications as deemed appropriate for smooth implementation of the
scheme for approval of the Competent Authority.
Based on the technological advancement in the mobile phone sector, EC may consider for inclusion
of new/advanced products under the target segment.
Detailed constitution, functioning and responsibilities of the EC will be elaborated in the Scheme
Guidelines.
13. SCHEME GUIDELINES
The Scheme guidelines for implementation of the Scheme will be issued by the Ministry of
Electronics and Information Technology separately.
14. AMENDMENT IN SCHEME AND GUIDELINES
The Scheme and its guidelines may be reviewed and amended w.r.t. products covered under both
target segments, applicable incentive rates, tenure of the scheme, sales, gestation period, or any other
matter considered necessary for effective implementation of the Scheme, from time-to-time on
recommendation of EC and the approval of the Minister of Electronics and Information Technology.
SUSHIL PAL, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
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