EMS: New Mobile Mfg Scheme Approved: India | Electronic Components

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EMS: New Mobile Mfg Scheme Approved: India | Electronic Components

India | Electronic Components EquityJulyResearch15, 2026

EMS: New Mobile Mfg Scheme Approved

India Govt approved new Mobile Mfg scheme (MPMS) today. Initial outlay

of Rs625bn; Tenure 5-Y till FY31. Sales-led incentive structure at 2.25%-5%,

with more 3% incentive on eligible sales for design and R&D of products

for building Indian brands. Dixon was the key beneficiary of LSEM, but

we view higher competition now vs CY21. ECMS has already approved 5

Camera Module (Kaynes, Syrma, ASUX, Uno Minda, Dixon) and 3 Display

.

applications (Samsung, Dixon, Wangda).

New Mobile Manufacturing Scheme Approved: On 15 Jul, India's Union Cabinet cleared

Mobile Phone Manufacturing Scheme (MPMS) and India Semiconductor Mission 2.0. MPMS

has been approved with Rs625bn budgetary outlay and 5-Y tenure (FY27-FY31). This scheme

will be aimed at scaling domestic mobile production with value-addition, and improving supply

chain and global competitiveness. Cumulative mobile phone production is targeted to reach

Rs39Tn during the 5-Y tenure of MPMS vs. Rs24-25Tn over FY21-FY26. Export increase is also

expected.

Incentive Structure: While we await detailed guidelines of MPMS, primary understanding is

that this scheme would offer differentiated incentives (2.25% to 5%) on eligible sales for mobile

production. Manufacturers are set to receive additional incentive of up to 1.5% for domestic

sourcing of key components/sub-assemblies. Further, Indian mobile phone brands will receive

additional 3% incentive on eligible sales for design and R&D of products.

Push to Indian Brands: MPMS will also aim at building Indian mobile phone brands, with

domestic R&D and design patents. The scheme will offer additional incentives on sales for