India Launches ₹62,500 Crore Mobile Manufacturing Scheme to Drive Local Sourcing
- Outlay: ₹62,500 crore over 5 years
- Tenure: FY 2026-27 to FY 2030-31
- Target: Mobile makers and domestic brands
- Incentive: Up to 5% plus sourcing bonuses
Electronics manufacturers and homegrown smartphone brands will receive fiscal incentives of up to 5% under a new ₹62,500 crore Mobile Phone Manufacturing Scheme. Notified by the Ministry of Electronics and Information Technology, the five-year initiative targets deeper component localization and stronger domestic value addition as smartphones become India's top export product.
The scheme divides support across two segments: global mobile makers including contract manufacturers with at least ₹10,000 crore in turnover, and Indian-owned brands generating minimum sales of ₹1,000 crore. Eligible manufacturers can claim tapered incentives on incremental sales over a moving baseline, alongside an additional top-up of up to 1.5% for locally sourcing critical components such as camera modules, displays, and battery packs.
Homegrown brands receive specialized backing designed to foster domestic intellectual property, including a 3% bonus incentive for local research and design alongside a one-year gestation option. Overseen by an inter-ministerial Empowered Committee chaired by the Secretary of Electronics, the policy aims to transition India from final device assembly to high-value technology ownership.
Frequently Asked Questions
What is the total outlay for the Mobile Phone Manufacturing Scheme?
The scheme has a total budgetary outlay of ₹62,500 crore, inclusive of administrative expenses, spanning five fiscal years from FY 2026-27 to FY 2030-31.
Who is eligible under Target Segment 1 (TS 1)?
Mobile phone manufacturers and EMS providers registered in India with a minimum turnover of ₹10,000 crore in FY 2025-26 are eligible for Target Segment 1 incentives.
What criteria must an Indian mobile brand satisfy under Target Segment 2?
An Indian brand must have a minimum sales turnover of ₹1,000 crore in FY 2025-26, more than 51% Indian citizen shareholding, domestic IP and trademark ownership, and local R&D capabilities.
What additional incentives are provided for domestic component sourcing?
Manufacturers can claim up to 1.5% in additional incentives on eligible sales by sourcing at least 25% of key components like display modules, camera modules, enclosures, batteries, and USB cables locally.
Source
Gazette Notification No. 232, Ministry of Electronics and Information Technology · 2026-08-21
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