&imwidth=800&imheight=600&format=webp&quality=medium "Rs 62,500 crore mobile manufacturing scheme aims to build Indian brands: Vaishnaw")
Union Electronics and Information Technology Minister Ashwini Vaishnaw on Friday said the Mobile Phone Manufacturing Scheme (MPMS) will help Indian mobile brands expand globally while strengthening the country's manufacturing base.
Speaking to the media in Delhi, Vaishnaw said the initiative will focus on more than raising production. It will also promote Indian brands, intellectual property and product design.
The government has allocated Rs 62,500 crore for the scheme, which will run for five years from FY 2026-27 to FY 2030-31. It has two target segments, with TS-1 supporting mobile phone manufacturing and TS-2 aimed at Indian mobile phone brands.
Incentives for Indian brands
The incentive rate under the programme ranges from 2.25 per cent to 5 per cent. Indian brands will qualify for the highest rate of 5 per cent, while companies can receive an additional incentive of up to 1.5 per cent for sourcing key components and sub-assemblies within the country.
Domestic brands can also get an extra 3 per cent incentive for Indian design and research and development.
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Vaishnaw said the broader objective is to improve India's global competitiveness, expand manufacturing capacity, strengthen local supply chains and increase domestic value addition.
He said India had previously built a mobile manufacturing ecosystem, but tax issues and competition from Chinese companies made it difficult for local brands to compete.
"We had a mobile manufacturing ecosystem, but because of the tax issues and because of the Chinese onslaught, it became impossible for them to compete in the market. Now that we have been able to establish the ecosystem back in our country, the time has come when we should now be focusing on developing Indian brand--Indian brand, Indian IP, Indian design," he said.
Production target set at Rs 40 trillion
The minister said cumulative mobile phone production could double during the five years covered by the scheme. Production currently stands at around Rs 20 lakh crore and is expected to reach Rs 40 lakh crore.
Employment in mobile phone and electronics manufacturing has also crossed 25 lakh, according to Vaishnaw.
He further indicated that Apple's manufacturing operations in India could expand beyond iPhones. When asked whether the company could start making products such as iPads and Macs in the country, the minister answered in the affirmative.
