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India is rolling out a ₹62,500 crore mobile manufacturing scheme to boost production and encourage companies to make more phones and components locally.
Breaking it down: the Mobile Phone Manufacturing Scheme will run for five years, from FY27 to FY31. Companies can receive incentives ranging from 2.25% to 5% of eligible sales, depending on the category they fall under.
The scheme has two main segments. The first targets mobile phone manufacturers, which can receive incentives of 2.25-5%. The second focuses on Indian mobile brands, which can get incentives of 5%, plus an additional 3% for Indian product design and R&D.
Both categories can also receive an extra 1.5% incentive for sourcing specified components and sub-assemblies domestically.
Why does India need this: India is already the world’s second-largest mobile phone manufacturer by volume, and around 99% of the phones sold domestically are now made in the country. Mobile phones also emerged as India’s single-largest product export category in 2025.
But while India assembles a huge number of phones, a significant share of the components that go inside them still comes from overseas. That is what the government now wants to change.
The bigger goal: the share of locally made components in Indian phones has already increased from around 15% to 23%, and the new scheme aims to push that number higher by rewarding companies for sourcing more parts domestically.
The government expects the scheme to generate around ₹39 lakh crore worth of mobile phone production and create roughly 60,000 direct jobs over five years.
There is also a push to create stronger homegrown smartphone brands. IT and Electronics Minister Ashwini Vaishnaw said India could see three new domestic companies capable of developing smartphones within the next 10-14 months.
