Mobile phone manufacturing scheme to deepen domestic value addition: Industry chamber

New Delhi, Aug 21 (AHN) The recently approved Mobile Phone Manufacturing Scheme (MPMS) ensures continuity of policy and will deepen domestic value addition and strengthen the component ecosystem, industry leaders said on Friday.

“We welcome the Central government's launch of the Rs 62,500 crore Mobile Phone Manufacturing Scheme (MPMS). The scheme builds on the strong foundation of PLI for Large Scale Electronics Manufacturing and marks the next phase of India’s mobile manufacturing journey," Pankaj Mohindroo, Chairman, ICEA.

This creates continuity of policy and strengthens predictability which has been demonstrated through successive schemes such as production‑linked incentives and the Electronics Components Manufacturing Scheme.

Successive schemes provide industry the confidence to make long-term investments and build deep manufacturing capabilities in India, he added.

"MPMS is a significant step to deepen domestic value addition, strengthen the supply chain and accelerate the development of a robust component ecosystem in India. Its focus on domestic sourcing of key components and support for Indian brands, design and R&D will further enhance long-term competitiveness," the statement from ICEA said.

The industry body emphasised that MPMS also creates a natural aggregator framework for the Electronics Components Manufacturing Scheme (ECMS), helping align demand aggregation, scale efficiencies, and ecosystem development across critical components.

“This convergence will be instrumental in accelerating component manufacturing in India and improving global competitiveness,” the statement added.

Ashok Gupta, Executive Chairman, Optiemus Infracom Ltd said that the scheme provides a strong and sustained policy framework to take India’s electronics sector from scale-driven assembly towards deeper, high-value manufacturing.

“The scheme would create a powerful demand-supply ecosystem by aligning with ECMS and strengthening domestic sourcing. Its focus on Indian brands, design and R&D would give a significant boost to local champions, enabling them to scale, innovate and compete globally,” Gupta added.

India has already emerged as a major global smartphone exporter and the next phase is to sustain the momentum while deepening the ecosystem and increasing value addition within the country.

India's electronics production rose from Rs 11.32 lakh crore in FY25 to Rs 13.11 lakh crore in FY26, marking a 15.8 per cent year‑on‑year increase, while the mobile phone production has skyrocketed, with exports rising to Rs 2.59 lakh crore.

—AHN

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