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The government expects the Mobile Phone Manufacturing Scheme (MPMS) to help Indian mobile phone brands expand globally and strengthen domestic capabilities in mobile manufacturing, Electronics and Information Technology Minister Ashwini Vaishnaw said while interacting with the media in Delhi on Friday.
Vaishnaw said the scheme will focus not only on increasing mobile phone production but also on developing Indian brands, Indian intellectual property and Indian design. He said the government has taken the initiative in consultation with the industry and wants to use the existing mobile manufacturing ecosystem to develop Indian brands. He said "TS-2, target segment two, is for supporting Indian IP, Indian design, Indian brand. That's a fundamental initiative. It's a very ambitious initiative, but we have taken it in consultation with the industry". "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 added. The Minister said mobile phone production is expected to double during the MPMS period. According to him, cumulative mobile phone production, which was around Rs 20 lakh crore, is expected to reach Rs 40 lakh crore. He also said total employment in mobile phone and electronics manufacturing has crossed 25 lakh. Vaishnaw also indicated that Apple's manufacturing presence in India could expand beyond iPhones. Asked whether Apple is expected to start making products such as iPads and Macs in India, the Minister said yes, indicating that the company could move beyond iPhone manufacturing in the country. Vaishnaw said the electronics sector also has a significant multiplier effect through smartphone manufacturing. On value addition, he said the highest level achieved by countries over a period of four decades has been around 38 to 40 per cent, while India has already crossed the 25 to 28 per cent band. "We think the way the entire program is structured, this will significantly improve in this MPMS period," he said. The government has allocated Rs 62,500 crore for the Mobile Phone Manufacturing Scheme, which has a tenure of five years from FY 2026-27 to FY 2030-31. The scheme has two target segments, with TS-1 focused on incentivising mobile phone manufacturing and TS-2 focused on supporting Indian mobile phone brands. Under the incentive structure, incentives range from 2.25 per cent to 5 per cent, with Indian brands eligible for an incentive of 5 per cent. The scheme also provides additional incentives of up to 1.5 per cent for domestic sourcing of key components and sub-assemblies. For Indian brands, an additional incentive of 3 per cent is available for Indian design and research and development. Vaishnaw said the broader objective of the scheme is to improve India's global competitiveness, increase the scale of manufacturing, deepen the domestic supply chain and increase domestic value addition, while also building Indian mobile brands. (ANI)
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