MeitY unveils ₹62,500 crore mobile manufacturing scheme
MeitY says the ₹62,500 crore Mobile Phone Manufacturing Scheme will boost Indian brands, local sourcing, R&D and domestic value addition in electronics.
SociapaHQ
The Ministry of Electronics and Information Technology (MeitY) has spelt out the contours of the recently approved Mobile Phone Manufacturing Scheme (MPMS) as the next step in India’s electronics manufacturing policy of creating globally competitive Indian brands, increasing domestic innovation and enhancing technological self-reliance.
The MPMS replaces the government’s earlier Production Linked Incentive (PLI) scheme for mobile phone manufacturing announced with a budgetary outlay of ₹62,500 crore and approved by the Union Cabinet.
The new programme intends to take the Indian electronics ecosystem beyond large-scale assembly, through deeper domestic value addition, stronger supply chains, local intellectual property generation and globally competitive manufacturing capabilities.
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Local Manufacturing:
A key feature of the scheme is that it places a strong emphasis on increasing the use of locally made components. The government will also provide an additional incentive of 1.5% linked to domestic sourcing of certain key components and sub-assemblies to incentivise manufacturers to reduce dependence on imports.
The scheme is also focused heavily on innovation and product development. Companies investing in product design and research and development (R&D) will get an additional 3% incentive on qualifying sales to speed up development of indigenous engineering capabilities and creation of intellectual property in India.
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The MPMS has been structurally designed to create globally competitive Indian mobile phone brands and technological sovereignty, said MeitY. The ministry said the programme aims to increase scale of manufacturing, further localisation and build a more resilient electronics supply chain that can help meet India's long-term aspirations of becoming a global manufacturing hub.
