Government Unveils ₹62,500 Crore Mobile Phone Manufacturing Scheme (MPMS)

Gist The Ministry of Electronics and Information Technology MeitY has notified the Mobile Phone Manufacturing Scheme MPMS , backed by a ₹62,500 crore outlay through 2030-31 . The scheme represents a strategic policy shift from merely subsidising the final assembly of foreign smartphones to aggressively incentivising domestic value addition, local component sourcing, and the creation of indigenous intellectual property. For civil services aspirants, this marks the evolution of India's industrial policy from basic import substitution to capturing higher nodes in global electronics value chains. Background The Context: In 2014-15 , India imported 70-75% of its mobile phones. Today, it is a net exporter and the world's second-largest phone manufacturer, largely due to global giants like Apple and Samsung setting up assembly operations. The Problem: Despite high volume, the domestic value addition the actual economic value generated within India's borders remains low at 23% , as most high-value components are imported. The Policy Evolution: The MPMS succeeds an earlier manufacturing incentive scheme that ran from 2020 to 2023-24 . While the first phase successfully brought assembly lines to India, this new…