The Government of India has launched a ₹62,500 crore Make in India Mobile Phone Manufacturing Scheme, a major shift to boost domestic electronics production and strengthen India’s position as a global manufacturing hub.
The scheme will run for five years (from Financial Year 2026-27 to FY 2030-31) and will be used to accelerate investment, increase domestic value addition and create a stronger manufacturing ecosystem for mobile phones and related electronics.
So this is an attempt to reduce reliance on imported components and enlarge India's presence in the global electronics supply chain.
Five-Year Manufacturing Push
The government will be supporting mobile phone manufacturing sector policy support for the five years, under the new programme. We expect manufacturers to improve manufacturing capacity and invest in new facilities and supply chain expansion in India and invest in new technologies.
Mobile phone manufacturing is already one of the biggest success stories of India’s electronics manufacturing push. Now the government wants to build on that momentum by encouraging higher levels of domestic production and value addition.
The five-year duration of the scheme also allows companies to have a longer policy horizon to invest and to plan capacity.
Strengthening the Make in India Ecosystem
The new programme fits in well with the larger Make in India strategy to increase domestic manufacturing and attract global companies to establish production operations in the country.
India is now a major manufacturing base for smartphones and there are several global companies based in India and manufacturing plants in the country. The expansion of the ecosystem has also created demand for suppliers in the fields of components, packaging, logistics, assembly and other manufacturing services.
The new financial commitment is going to strengthen these interconnected industries further, the government is going to say further.
Focus on Domestic Value Addition
One of the key objectives of India's electronics strategy is to move beyond final assembly and develop deeper domestic capabilities.
A wider domestic component ecosystem may help manufacturers source more inputs locally, potentially improving supply-chain resilience and increasing the economic value generated within India.
The new scheme therefore would allow for investment to be made not only in the handset assembly but also in the manufacturing activities and supplier networks.
Boost to Investment and Employment
The ₹62,500 crore programme will also have large economic implications.
The larger scale manufacturing investment can create direct jobs in factories while also creating jobs in logistics, warehousing, component supply, maintenance, transportation and other supporting sectors.
More manufacturing capacity could also help India attract additional global electronics companies to diversify their supply chains.
In the world of international manufacturers, India’s large domestic market and the increasing export potential has made India an increasingly attractive manufacturing market.
Supporting Electronics Exports
India's electronics exports have grown significantly in recent years and smartphones are a big part of that growth.
Now the government is seeking to build on this momentum by making India a more competitive location for global electronics manufacturing. A predictable five-year manufacturing programme would help companies plan long-term investments and possibly expand India’s share in international supply chains.
Higher production and exports might also translate into stronger foreign exchange earnings and a stronger position for the country as an alternative manufacturing base for global technology companies.
A New Phase for India's Mobile Manufacturing Sector
The ₹62,500 crore Mobile Phone Manufacturing Scheme is a significant continuation of India's electronics manufacturing strategy.
With implementation planned to run from FY 2026-27 to FY 2030-31, the government is providing the sector with a multi-year framework for growth in production, investment, growing the value of domestic products and increasing exports.
Such an initiative could be a key component of India’s ambition to become a major global electronics manufacturing centre.
With competition at a high level among countries that want electronics supply chains, the government’s recent move shows that it wants to keep India in the global mobile phone manufacturing race.
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