India rolls out incentives to revive domestic smartphone makers against Chinese dominance

The Ministry of Electronics and Information Technology unveiled a five-year mobile phone manufacturing scheme worth ₹62,500 crore, earmarking ₹5,000 crore for incentives to nurture Indian smartphone brands. To qualify, firms must generate at least ₹1,000 crore in revenue, have Indian nationals holding a 51% stake, and possess domestic mobile patents, while also setting up a MeitY-audited R&D centre. The incentive package can reach 9.5% of sales, split between incremental sales growth, local component sourcing, and R&D investment.

Lava International, NxtQuantum Shift Technologies—founded by former Realme leader Madhav Sheth—and audio-electronics maker Mivi have signaled participation, with NxtQuantum already moving one million Ai+ units on Flipkart. Past incentive programs failed to create lasting Indian brands, prompting analysts like Neil Shah of Counterpoint Research to caution that the new plan may repeat earlier mistakes by focusing on price competition rather than core technology development. Proponents such as Ajai Chowdhry argue the measures are essential for securing a domestic market share and fostering sovereign chip design.