technology & economy•Mon, August 24, 2026•5 min read

India’s New ₹62,500 Crore Mobile Manufacturing Scheme Explained

India is doubling down on its electronics sector with a new ₹62,500 crore mobile manufacturing scheme. Designed to replace the previous PLI framework, the policy aims to transition the country from a major consumer market into a dominant global export hub.

A New Chapter for Indian Electronics

India is undergoing a significant transformation in its industrial landscape. Following the success of its earlier Production-Linked Incentive (PLI) schemes—which attracted over $14 billion in foreign investment between 2023 and 2025—the government has introduced a new Mobile Phone Manufacturing Scheme (MPMS). With a massive outlay of ₹62,500 crore, the initiative marks a strategic pivot toward deepening domestic value addition and elevating local manufacturing capabilities.

Prime Minister Narendra Modi continues to emphasize India’s role as a growing global manufacturing hub.

What the New Scheme Changes

The new scheme isn't just a continuation of past policies; it is designed to address the next phase of India’s growth. While the previous PLI successfully established India as a key player in global supply chains, the new scheme introduces specific incentives aimed at supporting domestic brands.

Increased focus on localization to reduce dependency on imported components.
Specific financial incentives tailored to support and scale Indian-owned smartphone brands.
Expansion of manufacturing ecosystems beyond basic assembly into R&D and design.
Infrastructure development through regional industrial electronics clusters.

The Bigger Picture: Supply Chain Integration

Industry experts note that smartphone manufacturing is deeply embedded in global supply chains, requiring complex coordination between international suppliers and local manufacturers. The shift towards this new scheme suggests that India is moving away from purely being a competitive alternative to other manufacturing hubs, and toward becoming an integrated, indispensable link in the global electronics ecosystem.

India is no longer just a market for smartphones but a global key hub for manufacturing and exports.
— Advances in Consumer Research

Key Takeaways

A new ₹62,500 crore scheme replaces the earlier PLI model to modernize mobile manufacturing.
The initiative prioritizes the growth of domestic Indian brands alongside global entities.
Strategic goals include higher localization levels and the development of localized industrial electronics clusters.
India is shifting from assembly-focused operations to more complex design and R&D functions.
This move cements India's position as a critical node in the global electronics supply chain.

FAQ

What is the budget for the new mobile manufacturing scheme?

The new scheme has a budgetary outlay of ₹62,500 crore.

How does this differ from the previous PLI scheme?

While it builds on the success of the PLI, the new scheme specifically adds incentives to support and scale Indian domestic brands and encourages higher levels of local component manufacturing.

Does this scheme focus only on smartphones?

While smartphones are the primary focus, the government is also expanding its broader electronics industrial strategy, including regional clusters for industrial electronics.

Why is India shifting its manufacturing strategy?

The goal is to transition India from being a consumer market to a global export hub, reducing reliance on imports and integrating deeper into global tech supply chains.