Context
Recently, the Ministry of Electronics and Information Technology (MeitY) notified the Mobile Phone Manufacturing Scheme (MPMS), a ₹62,500-crore incentive programme aimed at promoting Indian smartphone brands, domestic assembly and local value addition. It builds on the earlier PLI Scheme for Large Scale Electronics Manufacturing.
Explanation
- India introduced the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing in 2020 to attract investment and expand domestic electronics production.
- The new MPMS provides incentives linked to incremental production/sales of mobile phones, with additional benefits for sourcing specified components domestically.
- It particularly promotes Indian brands, defined through Indian ownership, incorporation and locally held intellectual property/trademarks.
- Indian brands can receive a 5% incentive, along with a 3% design and R&D incentive, subject to prescribed conditions.
- The scheme seeks to raise domestic value addition in mobile manufacturing from about 18–23% to 35–40%.
- It targets cumulative production of about ₹39 lakh crore, exports of ₹15 lakh crore and around 60,000 direct jobs.
- MPMS reflects India’s broader strategy of Make in India, import substitution, export promotion and integration into Global Value Chains (GVCs).
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