India unveils Rs 62,500 crore mobile phone scheme to foster homegrown brands
The government has launched a Rs 62,500 crore Mobile Phone Manufacturing Scheme to boost domestic design, R&D and component sourcing, targeting a strong indigenous smartphone brand by mid-2027.
India’s Mobile Phone Manufacturing Scheme, backed by a Rs 62,500 crore outlay through FY 2030-31, seeks to nurture homegrown smartphone brands by supporting design, patents, R&D and domestic component sourcing. The initiative follows the Production Linked Incentive scheme, which helped lift domestic manufacturing share from 26% in 2014-15 to 99.2% by December 2024 and spurred export values to about Rs 2 lakh crore in FY 2024-25.
Incentives range from 2.25% to 5% on sales, with extra bonuses for local parts and a 3% reward for design work. Analysts note that the scheme aligns with the Electronics Components Manufacturing Scheme, creating a demand-generation loop for locally made components. While officials are optimistic about achieving a strong indigenous brand by mid-2027, experts stress that building a global brand requires sustained innovation, consumer trust and robust supply chains beyond financial incentives.
Why it matters
The plan could transform India into a full-stack smartphone hub, reducing import dependence and creating high-value jobs.
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