New Delhi, Aug 21 (NVI) The Mobile Phone Manufacturing Scheme (MPMS), aimed at expanding mobile phone manufacturing and strengthening Indian brands, was notified by the government today.
The five-year programme, from the current financial year, has an outlay of Rs 62,500 crore.
The scheme provides for incentives ranging from 2.25 per cent to 5 per cent, Union Electronics and Information Technology Minister Ashwini Vaishnaw said.
The MPMS will focus on two key areas— increasing mobile phone production in India and supporting the growth of domestic mobile phone brands.
The scheme will also encourage manufacturers to increase the use of locally produced components and sub-assemblies, helping deepen domestic value addition across the mobile phone ecosystem.
The programme follows the government’s earlier Production Linked Incentive (PLI) scheme for mobile phones, which exceeded its targets for investment, production and exports.
Under the first mobile PLI scheme, the government had set an investment target of Rs 7,000 crore. Actual investment crossed Rs 20,500 crore.
Production under the scheme reached Rs 11.61 lakh crore, well above the target of Rs 8.12 lakh crore. Exports stood at Rs 6.43 lakh crore, compared with the target of Rs 4.87 lakh crore.
The first PLI programme also attracted $14 billion in investment into the wider mobile phone ecosystem.
Domestic value addition increased to 23 per cent from 15 per cent during the period, highlighting the expansion of local manufacturing capabilities. (NVI)
