Union Cabinet Approves ₹62,500 Crore Mobile Phone PLI 2.0 Scheme To Boost Manufacturing And Exports

Union Cabinet Approves ₹62,500 Crore Mobile Phone PLI 2.0 Scheme To Boost Manufacturing And Exports

The Union Cabinet has approved Rs 62,500 crore for the second edition of the mobile phone Production Linked Incentive scheme, IT Minister Ashwini Vaishnaw said. The scheme aims to boost domestic manufacturing and exports. India’s mobile production rose to Rs 5.5 lakh crore in FY 2024-25, with exports reaching Rs 2 lakh crore during the same period.

Gaurav Vivek BhatnagarUpdated: Thursday, July 16, 2026, 01:46 PM IST
Union Cabinet Approves ₹62,500 Crore Mobile Phone PLI 2.0 Scheme To Boost Manufacturing And Exports
Union Cabinet Approves ₹62,500 Crore Mobile Phone PLI 2.0 Scheme To Boost Manufacturing And Exports | X - PTI

New Delhi: The Union Cabinet on Wednesday approved the Mobile Phone Manufacturing Scheme (MPMS) that will enable Indian brands to achieve technological sovereignty, capture large economic value and create Indian patents in design and research and development. The Cabinet gave a budgetary outlay of ₹62,500 cr for the scheme.

It seeks to scale up the production, deepen domestic value addition, strengthen supply chain resilience and enhance global competitiveness of India manufactured mobile phones.

The scheme provides incentive support for manufacturing of mobile phones in India at differentiated rates ranging from 2.25 percent to 5 percent and also provides additional incentive of up to 1.5 percent linked to domestic sourcing of key components and sub-assemblies.

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It also encourages designing and R&D for building Indian brands by providing an additional incentive of 3 percent on eligible sales.