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The government launched the ₹62,500 crore Mobile Phone Manufacturing Scheme

ICICIdirect Research 24 Aug 2026 DISCLAIMER

News: The government launched the ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) for FY27–FY31, targeting nearly 2x cumulative mobile production to ~₹39 lakh crore, ₹15 lakh crore of exports and ~60,000 direct jobs. Under Target Segment 1 (TS1), large manufacturers/EMS with FY26 turnover of at least ₹10,000 crore will receive 2.75% incentives in FY27–28, 2.5% in FY29–30 and 2.25% in FY31. Target Segment 2 (TS2) focuses on Indian mobile brands, offering 5% incentives + 3% for domestic design/R&D + up to 1.5% for local component sourcing. Three Indian companies are also in discussions with MeitY to launch indigenous smartphone brands within 10–14 months. Apple is expected to expand manufacturing beyond assembling iPhones, while Google is looking to shift more export-oriented production from China to India

View: The new scheme is positive for India’s electronics manufacturing ecosystem, with incentives shifting more towards components localisation, exports, domestic brands, design and R&D. Up to 1.5% domestic component sourcing incentive should encourage deeper localisation of displays, camera modules, batteries, enclosures and connectors, benefiting EMS players such as Dixon, Kaynes and Syrma SGS. Among all, Dixon is most favorably placed for components and exports business. Rising Apple and Google production in India should further strengthen the manufacturing ecosystem and export opportunity. The focus on Indian-owned brands could also create a new growth avenue for domestic electronics players like Dixon as the government seeks to build indigenous IP and design capabilities.

Impact: Positive

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