Cabinet approves Mobile Phone Manufacturing Scheme (MPMS)

Why in news

The Union Cabinet has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore to boost domestic production, value addition, and global competitiveness in mobile phone manufacturing.

Exam relevance

GS3 · Economy, Science & Technology, Governance · Prelims · Mains

Key facts

1. The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS).
2. The scheme has a budgetary outlay of Rs 62,500 crore.
3. The scheme tenure is 5 years, from FY 2026-27 to FY 2030-31.
4. Incentive support on eligible sales ranges from 2.25% to 5%.
5. Additional incentive of up to 1.5% is linked to domestic sourcing of key components/sub-assemblies.
6. An additional incentive of 3% on eligible sales is provided for design and R&D of the product for building Indian brands.
7. Cumulative mobile phone production is expected to reach approximately Rs 39,00,000 crore during the scheme tenure.
8. The scheme is expected to generate around 60,000 direct jobs.

Prelims pointers

• Mobile Phone Manufacturing Scheme (MPMS) approved by the Union Cabinet.
• Budgetary outlay of Rs 62,500 crore for MPMS.
• Scheme tenure: FY 2026-27 to FY 2030-31.
• Incentive support for mobile manufacturing ranges from 2.25% to 5%.
• Additional incentives for domestic sourcing and R&D.

Mains practice question

Discuss the significance of the Mobile Phone Manufacturing Scheme (MPMS) in achieving India's goals of technological sovereignty and becoming a global manufacturing hub. What are the key features of the scheme and its expected outcomes?

Static linkage

The scheme aligns with the government's broader objectives of promoting domestic manufacturing, 'Make in India', and achieving self-reliance in strategic sectors through policy interventions and financial incentives.

Significance

The MPMS aims to transform India into a global manufacturing hub for mobile phones, fostering technological advancement, job creation, and economic growth. By incentivizing domestic production and value addition, it seeks to reduce import dependence and enhance the country's share in the global electronics supply chain. The focus on building Indian brands and R&D is crucial for achieving long-term technological sovereignty.