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GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 2820
TO BE ANSWERED ON: 05.08.2026
NEW MOBILE MANUFACTURING INITIATIVE
2820. SHRI K E PRAKASH:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to
state:
(a) whether the Union Government has prescribed measures under the new mobile manufacturing
initiative to promote higher domestic value addition, design capabilities and manufacture of
advanced electronic components;
(b) the details of incentives and financial support proposed for promoting research, innovation and
component manufacturing under the initiative;
(c) whether the Government has assessed the potential of manufacturing hubs in Tamil Nadu
including Sriperumbudur and Hosur for expanding high-value electronics manufacturing and
integration into global value chains; and
(d) the measures taken or proposed to be taken by the Government to strengthen domestic
electronics manufacturing capabilities and technology development?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (d): Driven by Hon’ble Prime Minister’s vision of Make in India and Atmanirbhar Bharat,
Government of India has taken several policy initiatives to develop a complete ecosystem of
electronics manufacturing.
Government adopted a well thought out strategy to develop India’s electronic manufacturing
ecosystem – beginning with the manufacturing of finished products, followed by sub-assemblies,
components, and eventually machinery and tools. At the same time, Government focused on
creating the necessary infrastructure to support electronics manufacturing.
As a result of these initiatives, India has emerged as global electronics manufacturing hub.
Electronic manufacture in India has expanded significantly in the last 12 years, which can be seen
from the following statistics:
# 2014-15 2025-26 Remarks
Production of electronics goods (₹) ~1.9 Lakh Cr ~13.11 Lakh Cr Increased 7 times
Export of electronics goods (₹) ~38 thousand Cr ~4.24 Lakh Cr Increased 11 times
Production of mobile phones (₹) ~18 thousand Cr ~6.27 Lakh Cr Increased 33 timesExport of mobile phones (₹) ~15 hundred Cr ~ 2.59 Lakh Cr Increased 165 times
The growth in electronics manufacturing has been possible due to various measures taken by the
Government in the last 12 years to promote domestic production, exports and value addition of
electronic goods including mobile phones, IT Hardware and electronic components. Some of the
major initiatives include:
● PLI Scheme for Large Scale Electronics Manufacturing
● PLI Scheme 2.0 for IT Hardware
● Electronics Component Manufacturing Scheme (ECMS)
● Semicon India Programme
● Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme
● Scheme for Promotion of Manufacturing of Electronic Components and
Semiconductors (SPECS)
● Modified Programme for Development of Semiconductors and Display Manufacturing
Ecosystem in India.
● Public Procurement (Preference to Make in India) Order to promote using made in
India goods.
● Allowing 100% FDI in the sector
Mobile phones have been the central driver for overall growth in the electronics manufacturing in
the country. Mobile phone has contributed significantly to India’s total electronic manufacturing
and total electronics exports in FY 2025-26. India has emerged as the 2nd largest mobile phone
manufacturer globally and has transitioned into a net exporter of mobile phones, from being an
importer of the same in 2014. Mobile phone manufacturing is providing the scale and capability
required to build a globally competitive electronics industry.
Mobile Phone Manufacturing Scheme (MPMS)
To further scale up mobile phone manufacturing, deepen domestic value addition, strengthen
supply chain resilience and enhance global competitiveness, the Union Cabinet approved the
Mobile Phone Manufacturing Scheme (MPMS) on 15.07.2026, with a budgetary outlay of Rs.
62,500 crores for a period of five years from FY 2026-27 to FY 2030-31.
MPMS aims to scale-up mobile phone manufacturing by incentivizing mobile phone production
with differentiated incentives ranging from 2.25% to 5%. To increase Domestic Value Addition
(DVA) by strengthening the supply chain ecosystem for mobile phone manufacturing in the
country, the Scheme also provides an additional incentive of upto 1.5% on domestic sourcing of
key components and sub-assemblies.
The Scheme also aims to build Indian Mobile Phone Brands, by emphasizing on Research &
Development (R&D), innovation and encouraging indigenous technology development by
providing an additional incentive of 3% for Indian design and R&D to Indian mobile phone
brands.
Electronics Component Manufacturing Scheme (ECMS):
To develop a robust electronics component manufacturing ecosystem in the country, Government
has already launched Electronics Component Manufacturing Scheme (ECMS) in April 2025. The
Scheme supports the manufacturing of key components and sub-assemblies such as Printed Circuit
Boards (PCBs), Li-ion Cells, Enclosures, passive components and electro-mechanicalcomponents; Display Modules, Camera Modules and Optical Transceivers; their supply chain;
and capital equipment required for electronics manufacturing.
Electronics Manufacturing in Tamil Nadu:
Prime Minister Shri Narendra Modiji’s vision has benefitted Tamil Nadu. Government of India
has supported the setting up of many electronics manufacturing plants in Tamil Nadu under
various flagship schemes of MeitY as detailed below:
# District Number of manufacturing units
1 Chengalpattu 4
2 Chennai 6
3 Coimbatore 1
4 Kanchipuram 38
5 Krishnagiri 8
6 Thoothukudi 2
7 Tirunelveli 1
8 Tiruvallur 6
9 Vellore 1
These units are engaged in manufacturing of mobile phones, IT hardware products, Auto
electronics, consumer electronics, capital goods, PCB, display modules, enclosures, transducer,
LED lights, chargers, connectors etc.
Electronics Manufacturing Clusters (EMC 2.0): To provide plug-and-play manufacturing
infrastructure with ready land, utilities, and common facilities to reduce setup time and enhance
production efficiency, the Government notified the Electronics Manufacturing Clusters (EMC)
Scheme.
Under EMC 2.0 scheme, two (02) Greenfield EMCs have been approved in the state of Tamil
Nadu at Kanchipuram and Thiruvallur. These projects have a total project cost of Rs. 1012.02
crores covering an area of 853.6 acres with central finance assistance of Rs. 506 crores.
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