Cabinet Clears ₹62,500 Crore Scheme to Boost India's Mobile Phone Manufacturing

The Union Cabinet has officially approved a significant new initiative designed to substantially enhance domestic mobile phone manufacturing in India. This strategic move, confirmed by the Ministry of Electronics and Information Technology (MeitY) on Wednesday, marks a concerted effort to position India as a leading hub for electronics production. The scheme introduces a substantial financial framework aimed at bolstering local capabilities and integrating India more deeply into the global technology supply chain.

Designated as the Mobile Phone Manufacturing Scheme, the programme has been allocated an impressive budgetary outlay of ₹62,500 crore. Its primary objectives are multifaceted: to significantly scale up the production of mobile handsets within the country, to foster deeper value addition across the manufacturing process, and to strengthen the intricate supply chains crucial for handset assembly and component production. This comprehensive approach underscores the government's commitment to self-reliance in the electronics sector.

Under this new framework, the government will provide performance-linked incentives to eligible mobile phone manufacturers operating in India. These incentives are structured to reward increased domestic output and investment, with rates differentiated based on eligible sales. Manufacturers can expect to receive between 2.25 percent and 5 percent of their qualifying sales, a mechanism designed to encourage greater local manufacturing and reduce reliance on imports.

MeitY anticipates that the launch of the Mobile Phone Manufacturing Scheme will not only boost local production but also significantly improve India's global competitiveness in the electronics sector. By fostering an environment conducive to large-scale, high-value manufacturing, the initiative aims to attract further investment, create numerous employment opportunities, and ultimately establish India as a formidable player in the global mobile phone ecosystem. This aligns with the nation's broader vision of becoming a manufacturing powerhouse.