loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

The Union Cabinet approved the Mobile Phone Manufacturing Scheme

ICICIdirect Research 16 Jul 2026 DISCLAIMER

News: The Union Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with a ₹62,500 crore outlay for FY27–FY31, replacing the smartphone PLI scheme. While the earlier PLI offered 4–6% incentives on incremental sales to boost mobile phone production and exports, MPMS provides 2.25–5% incentives on eligible sales along with an additional incentive of up to 1.5% for higher domestic component sourcing, shifting the focus from assembly-led growth to deeper localization and value addition. The scheme targets a cumulative production of ~Rs 39 lakh crore and a total export value of ₹15 lakh crore over a five-year tenure. This compares with ₹22 lakh cr in PLI 1.0 with exports of ₹7.5 lakh cr+.

View: The scheme provides comforting clarity on business continuity of phone manufacturers post expiry of PLI 1.0. MPMS is expected to accelerate backward integration and increase domestic value addition across the smartphone supply chain by incentivizing local sourcing of key components. Among listed players, Dixon Technologies and Optiemus Infracom are likely to be key beneficiaries given their significant exposure to mobile manufacturing. Dixon is particularly well positioned, having already announced backward integration into display modules, camera modules and enclosures, enabling it to maximize localization-linked incentives. Additionally, Amber Enterprises, through its partnerships with OPPO, realme and OnePlus, could benefit from increased localization opportunities as these brands expand domestic manufacturing under the new scheme.

Impact: Positive

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere